NOD32 blocking Windows Automatic Update + Some Websites

Hi,

I have been browsing for answer for this, and I have found snippets of answers, but not entirely answering the question that's boggling me.

I have been using NOD32 2.7 for more than a year. Lately, I have decided to reformat my PC and install the new 3.0.669.0.

Right after I instal Windows XP SP2, and my hardware drivers, I installed NOD32 and Comodo Firewall.

Since then, I have been receiving an error that Automatic update has not been set, but when I look at the settings, it is on.

I tried to enable Automatic Update in services.msc, but whenever I set it to automatic, it just goes back to disabled after clicking OK.

In addition, google search seems to be blocked. When I type in any word and click search, the status bar in Firefox 3.0.1 is not even moving after 5 mins. However, when I check my speed in www.speedtest.net, my upload/download speed is greater than 384Kbps.

www.mail.yahoo.com also seems to be blocked. Status bar is frozen after typing username and password.

I have tried disabling antivirus and antispyware protection, and when I do this, I can start searching again. But the automatic update is still not fixed. I have tried disabling HTTP protecting, and still, nothing's changed.

After hours of frustration, as I can't even search for answers because google and yahoo is blocked, I decided to uninstall v3, and revert to v2.7.

Doing so, everything is back to normal.

Questions:
1. Is there a setting that I need to adjust to allow Microsoft Automatic Update?
2. Aside for the better GUI, is NOD32 v3 better than v2.7?


Any response would be helpful (I just hope you wont bash me for reposting a similar issue).

Thanks,
Darsktar