Hi, rawr. Welcome to LandzDown Forum.
This is explained in the Help file:
You can lock the startup sections of your registry, block possible and actual browser hijack attempts, block suspicious processes, lock executable file associations, Block malicious cookies, block Pop-ups, and uses the all new CSI technology to protect you from unknown variants as well. Even if Ad-Watch is turned off and something DOES install onto your system, it will recognize it and will kill the process as soon as it has seen it when turned back on. Emphasis added
Please do the following:
1. Right click on the Ad-Watch icon in the system tray and select "Restore Ad-Watch".
2. At the bottom of the screen there will be two checkable items called "Active" and "Automatic".
Active: Switches Monitoring On or Off without closing
Automatic: Switches Automatic Blocking On or Off
3.
Uncheck (red X) Automatic.
Now accept the alert from Ad-Watch.