A work around I discovered was to apply the blank' Default' IT Policy to the handheld, disable Content Protection on the handheld, & then wipe the device. Reassign the correct IT Policy before reactivating.
P.S. A word of warning - a couple of years back when I was running a 4.0.6 BES & we decided to unlock Content Protection for all via the IT Policies, we had a major issue with at least half the fleet getting an App 205 error the next time the handheld was reset. Make sure the users disable Content Protection on the handheld straight away. Having to delete & recreate user accounts, & reload the device software on 200+ devices was not fun! Hopefully the same problem would not occur in a 4.1.6 or 5.0 environment with later device software.
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