From a support forum: "I had contact with McAfee Gold Support and they told me, this happened to another Windows Server 2003 and they inofficially recommended me to use VirusScan 8.7 Patch 4 instead until Patch 1 for VirusScan 8.8.0 get released. This was something in my mind as well, so I decided to switch back again and wait for Patch 1 of VirusScan 8.8.0. In the meantime the server is stable again with VSE870 Patch 4".
From a support forum: "Here's the response I received from McAfee level 3 support:
We used to have hotfix 625756 attached to the knowledgebase, which would resolve the issue you're experiencing, but after hearing of install problems for customers who had our Host IPS product installed, we removed it from the KB - confirmed the issue and worked on a fix.
The revised installation logic for the hotfix still needs to go through normal testing and Quality Assurance - our difficulty there is this effort could not occur until after our VSE 8.8 Patch 2 release; Patch 2 we expect to be available March 20, 2012.
Since Patch 2 also contains the same fixes as hotfix 625756, and this solution will be ready first, ideally customers will be able to adopt Patch 2 as the resolution to this issue."