I never was asked to reboot on any version of installing spybot. Including the newest one. Try uninstalling it and then redownload and install from the spybot home page.
I wasn't asked to reboot either; I just started using the new version of Spybot. I don't think I've ever had to reboot regardless of what version I had installed, but I could be wrong as I first got Spybot in 2003 (v1.2?) and that's a long time ago!
Fewer programs or program changes seem to require a reboot these days thankfully.
That depends if you have anything opened from Spybot or using the resident protection like TeaTimer.exe.
The install of the new version can't overwrite these files because they are in use.
So you have to make a fresh system start.
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