Loss of application folder after distribution

I am having the same problem as detailed in TID 3193227 except that it is
ZfS 6.5sp2 not 7 and the "overwrite existing target folder..." is not
checked on any application distribution. Each time the distributions
are "pushed" via TED, the application folder structure is removed from the
distributed apps. Checked all distributed apps because I was told by a
MCNE that just one distribution with the box checked would cause that
problem. Has anyone seen this with ZfS 6.5sp2? Thanks!