Hi Imran,
Are you looking forward to the managed system configuration or only host configuration.
If your aim is to managed system configuration, save the host configuration at step-2 after applying the on the fly check and save it and leave host configuration tab.
Now start managed system configuration, follow all the steps, In step 3 make sure that diagnostic agent assignment is correct, diagnostic agent is running and in step 5 you will enter details for Wily EM and managed system. Step 8 you will be running Introscope host adapter.
Let me know if this works.
Thanks and Regards
Sachin Gupta