You always require a firewall. It is like having a bouncer at every door to your house. Just because you're in the kitchen or only mowing the back lawn doesn't mean someone won't try to pick the lock on the front door. The mere act of being connected to the internet exposes you to attacks. Browsing the internet is like sticking mail through the mail-slot in the door
There is an update required for the client and something is blocking it. Usually it's the firewall. Where is this computer? (home, school, college, work... etc)
Also you will need to post your system info as requested in the Must read before posting: How to post your System/Network information thread. In particular we need to see the whole SYSINFO file.
If your internet router has a firewall on it, that could be blocking the connection as well. You can find out what ports need to be enabled for MxO to work in this thread: Up to date port information for those with super tight firewalls (like me)
If you have a useropts.cfg file Tiango try removing it and then try patching. When the launcher stalls after displaying the Server/Client versions usually its because its having trouble talking with the patch or authentication server if I am recalling the process correctly