Did you turn off system restore? If AVG gave you a message saying you need to reboot your computer, did you? Have you tried to manually delete infected files with tools like unlocker or rkill? [NOTE; deleting files manually can lead to complications and side effects including but not limited to system instability, broken functions, unusable programs, impaired functionality, loss of data, crashes, paralysis and death (of your computer that is). You have been warned; don't do it unless you know exactly what you're doing, and even then, be careful.]