For your info re the present AVG Team forum involvement.. Just to keep you updated.. 'Information' forum area.. Have a look @ Christmas Holidays 2012 i.e. The AVG Team will answer @ the earliest after 2nd Jan 2013. In urgent cases please contact AVG customer care experts who are available 24/7.
AVG Forums Volunteer ModeratorAVG Forum member since - Nov. 27, 2004My total posts on the Old AVG Free Forum - 27,063 AlanHow-To Articles | FAQ | Free Support
I have exactly the same problem, also on XP SP3. According to the system accounting information, about 2 days (57 hours) after AVG 2013 was installed as an upgrade from AVG 2012, avgwdsvc.exe started consuming 100% of one of the cores, and is doing that ever since, for more than 4 days. I'm lucky that my CPU is an i7, so I have 7 more cores to do useful things with my system.
It is quite clear that avgwdsvc.exe cannot simply be killed. The corresponding service cannot be stopped or disabled, either (unless one gets to Safe Mode, I guess). If AVG will not function without the watchdog, disabling it is pointless, even if that's possible.
So what is the solution for this annoying and unpleasant problem? I could reboot the system, but the problem will likely happen again after that, I guess.
Also, what is the effect of this problem on my system, apart of eating up CPU cycles? E.g., does it hamper AVG in any way, such that my system is not fully protected as it should be?