I will spare you my thoughts on this product, but I did get this to work.
1. Backed up, then did a clean install of 11D (with HF 2,6,9)
2. Deleted and recreated all jobs/policies/templates
3. Created a media set for each weeks tapes, setting overwrite protection to 3 weeks and Append to 0 hours. Previously, all the weekly and monthly tapes were in 1 media set, BE didn't like this.
4. In the Dupicate template (to tape) I chose "Overwrite Media" (previously it was set to Append, the overwrite)
5. For Media Management, I deselected "Prompt before overwriting imported media" (we use Partial)
6. Replaced RAID controller with U320 Scsi controller (this was our fault, as they don't recommend connecting tape drive to raid controller)
Any more issues like this, we are going to go with xcopy and disk to disk.