Not sure what is going on with AVG everybody is having the same problem. Something AVG is doing.
1. Download this file -
COMBOFIX
2. Double click combofix.exe & follow the prompts.
3. When finished, it will produce a log for you. Post that log in your next reply
Note:
Do not mouseclick combofix's window whilst it's running. That may cause it to stall.
Post a new hijackthis log also please.