What i do when these problems occur is boot the computer with knoppix, (assuming you know how to use linux) and delete the infected files. Since knoppix is a different OS the virus will not be able to work in this OS.
Still AVG is a good antivirus and should be sufficient if you update regularly. Use zone alarm fire wall (freeware for the basic personal use version), it will automatically rate websites so you know if you are clicking a suspicious likn.