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Had a client that had this issue. You simply need to remove the

CTF temp files in C:\Documents and Settings\All Users\Application Data\Avg8\update\download

Only remove the 2 files that end with .ctf.

Note: The Application Data folder is hidden by default. Use the Start, Run dialog and press {ENTER} to open the folder.

Windows Vista users: Delete the .CTF files from the following folder:

C:\ProgramData\avg8\update\download

Despite criticism that Windows Vista came in too many versions, Microsoft is moving ahead with plans to offer just as many editions of Windows 7.

Although the software maker will offer at least six distinct versions of the new operating system, Microsoft said to expect almost all PCs sold in the U.S. to come with either the Home Premium or Professional editions of the operating system.

Taken from the following CNet Article