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McAfee Firewall will protect you from hackers and other prying eyes and will help prevent malware taking hold but you should also have antivirus protection.
Nothing can be guaranteed however, if you surf dangerously and are in the habit of clicking on unknown links. A good hacker can get around any firewall so it pays to be alert for unsuaul activity.
Some security tips here: http://home.mcafee.com/AdviceCenter/Default.aspx?id=ad_ost
There are many independant security forums out there, you should peruse them and see what they are saying.
The forums here are more more for technical support with the McAfee products.
That person is NOT a 'bud' if he spends his time spying on his 'buds'. He's a common hacker and actually could be committing a crime.
If he were my 'bud' I'd have reported the matter to the Police.
Download, update and run the FREE version of THIS tool and let it remove anything it finds.
Make sure all your computer accounts have strong passwords.
Download Hijackthis and post its log with a description of your 'bud's' activities on one of the following specialist forums.
Do not post Hijackthis logs here, we can't help with those!
Post the logs at a specialist Forum:
Be sure to read all the sticky announcements/instructions at the top of each malware forum!
Move to Malware Discussion > Home User Assistance.