Microsoft Investigating Power Pack 1 File Conflict Errors

A number of Windows Home Server users on WGS and Microsoft’s WHS forums are reporting a File Conflict error occuring in their WHS systems with PP1 installed.
When this occurs it has proven difficult and in some cases impossible to fix the conflict by deleting the files identified as being the cause. This error also seems to be effecting the Backup database with a Backup service is not running also being reported.
Could this be a bug introduced by PP1?
I have experienced these issues myself and found that a Server reinstall has been the only way to “fix” it - however it reoccurs. The other options appears to be to delete the Backup database which I’ve been reluctant to do and start over as it currently has over 3 months of backups in it.
If you are experiencing these issues Lara Jones of Microsoft’s Windows Home Server team has asked users to log a bug report via Connect under the WHS beta program - this is the sticky post on Microsofts Windows Home Server forums:
I would like to take this opportunity to point everyone towards the release notes for Windows Home Server Power Pack 1. This document provides helpful information regarding improvements in PP1 and known issues. In addition, WHS with PP1 is now more active in monitoring the health of your server, specifically storage. This may result in more messages from the server:
Continue At Source
Reference : http://bink.nu/news/microsoft-investigating-power-pack-1-file-conflict-errors.aspx