The free version of daemon tools I assume? I run in on win 7 64 with no problems, so just go to their site and download the latest version. Why are you running such an old version to begin with?
The newer version has spyware. It can be disabled upon install, but I've heard stories where people who unchecked the selections still got slammed with it down the line. I also don't care for most of the other functions that came with the newer versions of Daemon, since I only used it for emulation.
As for a firewall, comodo seems ok so far. Still running AVG myself and putting up with the occasional prompt to upgrade(unless you let them install a toolbar wihich is an installation option, this may lead to more ads, but I have never enabled it).
You use comodo in place of Windows Guard?
Have met the same problem when I changed OS to Se7en, but everything was solved by installing DT Lite from their website, yes.
The earliest DS Lite is v.4.0+, which is also around the same time the spyware was embedded. Right now, I'm running the first version, v.3.47.
And I have Avira Premium Security Suite 10, it includes both antivirus, firewall and something more. It works for more than half a year already and I have no complaints. Well, except for the tuning - it has just too many options.
I had that problem when I upgraded to Trillian 3 Pro from Trillian 3 Basic, too many unnecessary functions and a lot of unwanted changes. However, I haven't had to configure Avira in any way, I'm just looking for a low-maintainence, high performance freeware virus-scan that (most of all) does not lob ads in my face.