>>Can you PING localhost?
>
>Now that's interesting! Yes I can PING localhost and get a response.
OK, the next step would be to disable the McAfee firewall and see if that makes a difference. If you have broadband and don't have a hardware firewall you should probably disconnect your machine from the Internet during these tests.
Here's another question - did you install SP2
after installing the McAfee suite, including the firewall? If so, you might try uninstalling, then reinstalling McAfee as its firewall may have been installed in a mode that is not SP2-compatible, or may not be SP2-compatible at all without updates.
Regards. Al
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