Eset v3 and CPF v3 loopback issue

I recently upgraded to V3 of Eset NOD32 and CPF v3. A little more then I expected in the learning curve department, but found most of my answers in this great forum.

Still one eludes me. How do you setup CPF to deal with NOD v3 and the loopback problem that I hear so much about?

Is NOD v3 really by passing the firewall and rendering it usless? This comes from the Eset forums where a few are really upset with Eset. (no mention of CPF in their posts)

Any and all help will be appreciated.
Stan

OS - XP home - sp2
AV - Nod32 - v3.0.566.0
FW - CPF v3.0.14.276