You're probably going about it in the right way by excluding specific directories / processes, but you may not be hitting all of the sub-processes that this software uses. My suggestion would be to search for the required/suggested AV exclusions documentation either online or directly from the software developer. Whenever one of my clients requests assistance to get software working, that is likely being blocked by McAfee, from me... one of the very first things I ask them is to provide me with the software requirements documentation so that I can be sure all necessary exclusions are made.
I've not had a chance to look at the settings myself but you seem to imply that marking a process as trusted does not mean that any processes launched by that process are also trusted by default?
This is exactly the case and the reasoning behind it is you wouldn't want to have a policy which lets process 'virus.exe' to launch just because its parent (hijacked) process, 'recorder.exe', was allowed.