Windows in its infinite wisdom protects files in use (even malware) or in system folders, so it is likely that avast! can't delete or move files in use. So schedule boot-time scan in avast's menu if you have XP, win2k or NT, otherwise boot into safe mode and run an avast scan. This should ensure that the file isn't in use and avast should be able to deal with it.
As part of this protection, files deleted from the system folders are often copied to the C:\System Volume Information\ folder as restore points by windows system restore.
Whilst it doesn't seem to be an issue here, but deletion isn't really a good first option (you have none left), 'first do no harm' don't delete, send virus to the chest and investigate.