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Maybe firewall permissions? Don't know what firewall you have but you might try setting it at a lower security state temporarily ... Since the McAfee agent uses IE as connection by default you might also try resetting IE (in advanced), use medium "internet zone" within IE.
Thanks. I had tried that, turned off the firewall of the modem. Its really wierd. For some reason it locks up the modem itself. McAfee gave up, so I paid for a disk to be mailed to me.