Data Protection Manager (DPM) 2007 and Forefront hiccup Fixed!
Our previous Forefront/DPM problem has finally be resolved.
After building a lab or two and talks with Ms (thanks Lee!) I discovered the new client build, 1.5.1958.0 KB956280 fixes the problem. Have deployed it to a number of previous problem sites and DPM is behaving itself nicely.
As a note the previous version 1.5.1955.0 KB952265 didn’t fix this issues on our production or my lab environments. Weird!

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