It's not just Home version. I'm using Win 7 64 bit Professional version.
Yesterday evening I got the exact same virus warning.
It was caught by a full systems scan, which I run daily, so I believe I was infected during the day on 9/23 or either Avast scans did not pick it up for almost a year. Or... It could be a false positive.
In any case the system worked fine until reboot. When Avast caught the virus it "moved the suspected files to the war chest" and then suggested the boot scan be run. I did that with no further virus detection.
However, after the system completed the full scan at boot Windows 7 was not working. I could sign in and everything looked fine (good back ground, desk top ICONs, Gadgets all were present and working), but no application would run. Most of the services were stopped, Avast itself was affected - not running and the Control Panel was empty.
I called Avast support, but the Iyogi floor super finally gave up and said I would have to re-install. He thought the user profile was corrupted but with no control panel applets we could not add new User account. He tried activating the built-in Administrator account from the repair console (net user Administrator /active:yes) it didn't work.
This boot time repair console, however, also had an option to do a restore. So before doing a re-install I tried restoring from a restore point made earlier in the day (9/23 -Caused by a Microsoft critical update). The restore was successful and when I rebooted and finally got back in to my system everything was running.
I did another full scan--- the same virus was found again in the same spot. Avast did the same thing again 'moving the suspect files' and requesting a boot time full scan. I rebooted but did not do the full scan.
The action taken by Avast caused the same broken system. So I rebooted again, this time when I did the boot time repair console I chose a restore point from 9/20. When the restore was successful and the systems rebooted everything worked fine and a scan of the affected directories showed no virus. That was about 0130 last night a full 7.5 hours from the first discovery.
This morning I've run another full scan with the latest AV defs from Avast and still no virus found.