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"Is this supposed to happen?" Probably not, but you should be able to repair the program by simply using the CD or installer file again to reinstall or repair things.. After it's installed, be sure to the file as an "Exclusion" in both the "On Access Scanner" and the "On Demand" scanner settings.
I'm guessing it's got the same name as another malware detection and it's now a false positive. It would also be a good idea to send the file to McAfee which would allow them to identify it correctly in their future DATs.
Hope this helps.
Why not try and restore the file from quaratine?