I have the exact same problem, however I do find it ludicrous that all avast anti theft versions up to the previous one worked fine on my Samsung Galaxy S, whereas the new version requires lots more... And yes, I do know I should clear space in the /system partition, but that's something not for the light-hearted amongst us...
Hope that avast anti-theft returns back to its /system space requirements, otherwise I'll have to seek another anti theft solution, even though up to now I found avast to be a neat/small/functional solution...