What is exact version of Groupshield and what Patches/HFs are installed locally (Dashboard - Product Information)
What version(s) are the GSE Product Extension(s) in ePO??
On GSE server If you open agent status monitor if available in task bar or start run <agent install folder>\cmdagent.exe /s
Hit "Enforce Policies" Button
You should get a list like "Enforcing policies for <product>"
Is there an error?? Is product listed as GROUPSHD7000 or GROUPSHD7003 (or no GROUPSHDxxxxx entry at all)??
This is recorded also in agent_<servername>.log in
%allusersprofile%\application data\mcafee\common framework\db
Ok in the Hotfix 722781 zip file package you have you will see a series of files called GROUPSHD7003_<lang id>.zip
These are a set of new Product extensions for ePO.
You need to install the appropriate one for the language of ePO - e.g. english GROUPSHD7003_0409.
Also there is a Tool supplied in the HF zip called GSEePOUPGRADE.exe - this will upgrade your policies from GROUPSHD7000 to GROUPSHD7003 to be compatible with the new Format applied in Hotfix722781 locally on GSE server. (see "Using EPO upgrade tool" section of the readme)
N.B. When you install the new extension it will have default policies - you need to upgrade the policies then apply those upgraded policies to your servers\groups in ePO "before" pushing policy.