SCCM Bitlocker Policy for Removable Device Encryption

Occasional Visitor

We have just upgraded to SCCM 2006 and are testing the Bitlocker policies. We have successfully got fixed device encryption working but we are having real problems with Removable device encryption. With RD Encryption enabled, whenever I plug a USB device in it asks if I want to encrypt the device, if I tell it to encrypt it immediately errors saying it cant encrypt as the device contains system boot information. We have GPO setting for user and machine to disable Deny read/write access to removable devices. Removable disk encryption is 'greyed' out in Bitlocker mgmt. Has anybody got any experience of this 

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