I would start by checking that "detect unwanted programs" is ticked for the On-Demand Scan.
Also, I would check that the Application's filename is defined in the "workstation" (or "Server") policy as is appropriate.
BTW, what query are you using to look for the detection in EPO?
Thanks for the reply. It ended up being a corrupt agent that I was doing the scan on. It wasn't getting the new VSE policy. I reinstalled the agent and all is good again. Thanks for the quick reply.
Note there is a limit to how many entries you can put in the VSE unwanted programs - if I remember right it's about 250 entries.
This has turned out to be a really effective way of searching for banned files.