Issue still exists after original post 2 years ago!
So last night I also tried to install Carbonite and discovered the alleged problem with Spybot. So after 2 years (the original post on this site for this issue), the issue remains. I have decided to de-install Carbonite as I will not remove a product (Spybot) that has served me well for years to remove unwanted crap from my machine. I am not even going to give them a second chance as I don't have days and weeks to spend with help desks to resolve. The good news is that there are alternatives to Carbonite.