Is microsoft antimalware service in my computer or is it engaged through the internet.

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Is microsoft antimalware service in my computer or is it engaged through the internet.

 

I keep getting the error "Failed to connect with Microsoft antimalware service in a timely manner" when I try to install Microsoft Security Essentials. I had it installed, removed it and am trying to reinstall. What needs to happen to get the service connected?

I am online when trying to install. Is the firewall preventing the connection? Do i need to add an exception?

 

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