I have XP Pro, but the 32bit version and have no such unresponsiveness. But I have 2GB of RAM plus a faster processor and I believe the XP 32bit version is less resource hungry than the 64bit version.
Personally I feel that increasing your RAM would help as I think 512MB for 64bit XP is probably a limiting factor.
What version of avast do you have installed, 7.0.1466 being the latest ?
Did you have another avast version installed before this one ?
Has this always been the same since first installing avast ?