1.
Guy's... Vlk was going to enlighten in a past post, but I think he's forgotten
Sorry, Vlk has been busy lately. Really...

2.
Perhaps the Avast team will chime in, but lately I've noticed they pick and choose what questions to answer
More precisely, I've chosen the questions that I could answer immediately, almost without thinking. Reason? See item 1. above

Anyways, now it's the weekend and I finally have some time to do some work, right?

OK Walker, let me explain the avast/Outlook interactions in more detail.
avast has it's own Outlook plug-in ("add-in" in MS parlance) that's being loaded into the Outlook process (Outlook.exe) and exposes some well-defined APIs for communication with Outlook. E.g., Outlook itself calls the plugin whenever a new mail is received to scan it. The point here is that it works transparently, with
no extra config requirements. NO changes to pop/smtp servers! (No 127.0.0.1 trick - so if you've set up Outlook mail accounts to use 127.0.0.1, you simply have it wrong. The Mail Protection Wizard explicitly ignores Outlook accounts, of course.).
Now, back to your problems. I don't quite believe the problems are related to avast. I've tried searching the Usenet (via Google Groups) and found a couple of guys with the same problem - but unfortunately, no straightforward solution. Anyway, it should be quite easy to find out whether it's avast or not - just disable the avast add-in and see what happens. To do this, go to Outlook Tools menu -> Options -> Other -> Advanced Options -> Add-in Manager, and uncheck avast. Restart Outlook - this time, the avast plugin won't load at all. If it solves your troubles, then
I have a problem; otherwise,
you have a problem. Deal?

Take care,
Vlk