What a mess!!
I wanted to add 7.1 sp2 does not fix this problem.
I basically ran the uninstall policy on 7.0 for all machines but remember to exclude your current 7.0 ns box.
Then some of these uninstalls were not completly removed because they were running inventories or something during the removal so I would then run a aexagentutil /clean on those systems using psexec.
Crazy that this works as bad as it does!
Turn on policy wait a few days start checking machines to see the status of this folder:
c:\program files\altirs\altiris agent\
then either run clean or push new install from 7.1sp2.
Time consuming and crazy that I have this deployment product that can't actually upgrade itself!
Out of 150 I have about 10 left that I'm having a hard time getting users to power up. Only took me about 3 weeks to complete!