Thanks for the report and sorry for the problem.
Update is safe now, the affecting file has been removed so you are safe to enable auto-update now. We will post more info and tools to help remediate this once we know more
Please accept our sincere apologies for this unpleasant situation.
I would like to ask you to check this announcement post and follow described steps. You can also use modified AVG Rescue CD for USB medium described at FAQ 4080, which contains automatic solution, when affected computer is booted from it.
Thank you for your cooperation and patience ___________________AVG TeamHow-To articles | FAQ