I unchecked "prevent mcafee services from being stopped" option and tried to start McShield but it's giving error "Error 1053: The service did not respond to the start or control request in a timely fashion" and McShield service is not starting up. I'm also giving up and going to reimage my machine. Thanks for all the responses.
I am running VirusScan Enterprise + AntiSpyware Enterprise 8.8 on Windows 7 Enterprise. I had a similar (but not identical) problem - From my VirusScan console, I would see that "On-Access Scanner" would be disabled. On right clicking, "Enable" was not greyed out. But when I would select it, this would have no effect, and On-Access Scanner would remain disabled.
So taking a cue from alexn's suggestions, here is what I did and this fixed the problem.
So much for that. This does not make me feel good about my McAfee product - that it can be stopped under the radar.
Thank you sbagchi for sharing. We have similar issue in the office with users would not pass our host checker to get through VPN . The sympthoms are On Access Scanner disabled and greyed out. 2nd Update Virus on the McAfee agent is greyed out. I will follow the steps your recommend and i hope this problem will not occur again on the machine .
When VSE and HIPS are installed on the same endpoint (computer) HIPS takes the role of access protection. So access protection will be turned off on the VSE console. On-access scanning should be enabled and running. You may test with an EICAR to verify. If need be you may place HIPS into LOGGING Mode. Once HIPS is in LOGGING Mode you will be able to enter the VSE console with all options available.