Is This Trojan Alert Legit?

[Chim]

I was looking for for Christmas Wallpapers a while ago at theholidayspot.com.
In the middle of that, I noticed avast start downloading the 2nd Virus Database Update for the day and it's only gonna be midday here.  It seemed odd.

With that 2nd Update still downloading, suddenly I get this Alert:

http://files.myopera.com/SuntanaLab/LabFiles/Avast%20Trojan%20Alert.jpg

Is this legit?  Note that in the image above, the VPS version is: 091220-0
Like I said, the Alert popped up while in the middle of downloading a Virus Database Update.
Therefore, once the Update finished downloading, my avast was updated to 091220-1

NOW ... here is my question, as per that Alert, can I be certain that the Trojan was NOT allowed into my computer?  I clicked on the "Abort connection" Button.  But, I understood that avast was going to abort my connection to the Internet.  It did NOT.  Was it SUPPOSED to abort my connection to the Internet in order to NOT allow the Trojan into my computer?  If it did NOT abort my connection to the Internet, WAS the Trojan denied entry into my computer?

As per the image, was avast already informed of this website?

[Hermite15]

connection was only aborted with the bad site with the trojan, you clicked on abort connection, good, you're done and safe   if you hadn'd denied the connection, the standard shield would have taken over and intercepted the file, and depending on you, sent it to chest or deleted it.

[Chim]

Great!  I prefer that a Virus / Trojan be found BEFORE entering my computer and have it be denied entry rather than having to later wonder and worry whether whatever File got infected is critical and will affect Windows operation if moved to the Virus Chest.

Thanks, Logos!