MDM.exe definition, relationships, removal:

mdm.exe is a system process - Machine Debug Manager. Used by developers. Located in "C:\PROGRAM FILES\COMMON FILES\MICROSOFT SHARED\VS7DEBUG\".

The Microsoft Machine Debug Manager (mdm.exe) does not connect to the Internet itself. However, it is still a rather ill-behaved program that leaves scads of temporary files on the hard drive that it never deletes, and fails to unload properly (on shared computers, when a user logs on a new instance of mdm.exe may start, but it won't necessarily exit when the user logs off. Depending on how many users have used the PC since the last reboot, dozens of copies of this program could be simultaneously running, eating up CPU and memory!).
mdm.exe is known to cause crashes and fatal errors on some PCs using Dial-Up Networking. File mdm.exe is related to Doly Trojan. File mdm.exe is related to Findwhatever.