You need to stay off the Internet until you have removed all the malware from your computer; it sounds like a root-kit has installed itself on your computer and is able to evade AVG. Root-kits are extremely hard to get rid of.
Try this :
Unplug from the Internet, or turn off the wireless router if you are using a wireless connection.
Restart the computer and press and hold down the F8 key as it starts up. A menu will appear, use the up and down arrow keys to get Safe Mode, and press Enter.
After the computer finishes starting up, start Windows Explorer and go to
C:\WINDOWS\System32
and run the program MRT.exe
It is called the Malicious software Removal Tool and is a Microsoft program written to remove certain mal-ware programs, including known root-kits.
It is updated once a month.
Article ID: 890830 - Last Review: January 13, 2009 - Revision: 55.0
The Microsoft Windows Malicious Software Removal Tool helps remove specific,
prevalent malicious software from computers that are running Windows Vista,
Windows Server 2003, Windows Server 2008, Windows XP, or Windows 2000
http://support.microsoft.com/kb/890830/
Article ID: 962007 - Last Review: January 29, 2009 - Revision: 3.0
Virus alert about the Win32/Conficker.B worm
http://support.microsoft.com/kb/962007
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If this does not work, and the other suggestions do not work, your only option is to copy all your data (documents, videos, pictures, music) to a CD or DVD or external hard drive and then reinstall the factory software, which will wipe out all malware.
Either way, this will take several hours. Save your data now.
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