Try doing these following Steps
1. If crackshield is on already, Make sure you disable it by clicking on the icon on the taskbar or ending the process on the task manager (Process->HSLaunch.exe->End Process)
2. Remove dsound, dinput8, and HSLaunch out of the Mabinogi folder, you can put those three on your desktop or something because we're going to use them again.
3. Launch Mabinogi the Normal way, by normal way I mean using the Mabi Patcher (Mabinogi.exe) and not Direct Launch.
4. Doing this, the HSUpdate should automatically start, Log in to the main game "
5. When you reach to the character selection screen, you can go ahead and exit out Mabinogi, after doing so put back the main 3 files on the Mabinogi folder
6. Now launch Mabinogi.
If you still have an issue after these 6 steps, you may need to do a System restore