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I think "SiteAdvisor Plus" does exactly that if set to do that. Parental Controls also has restricted settings.
Without a name for the utility I'm sorry I can't really say.
It may seem like it is repeating iteself but it isn't. First DMSETUP downloads and then the applications. The second "apparent" download is the files unzipping themselves prior to installation.
I downloaded DMSETUP, then I executed it. When the installation begins, it asks for my emailaddress and my McAfee password. After that, it starts to download the program files from the McAfee-site. I checked it out by first disabling my internet-connection. I then got a message saying something like 'Not able to download the program files... check your internet connection'.
So DMSETUP does need the internet everytime that I want to install McAfee Internet Security 2009. This is not what I want, cos in case of internet problems I wouldn't be able to install MIS 2009 at all. This should not be.
Whenever you buy software in a local computershop, you get a cdrom to install the program on your computer, without being dependent on an internet connection.
McAfee like many protection software suites requires coinstant internet access not only to install, but to function, as it checks frequently with its database in order to verify that everything is up to date etc.
I think that you will find that most programmes that install from a CD-ROM also require an internet connection at some stage of the process.