You don't lose any protection layers. If you have HW virtualization feature enable, avast will use NG to analyze malware in DeepScreen, otherwise avast will use classic sandbox. Also, if your system is NG compatible and your system will be low on resources at the moment we'd like to analyze a malware in NG, we'll analyze it in classic sandbox. So you don't need to worry, the malware will be always analyzed.
Or will it just be a 1% of side kick when all detections (dyna-gen) go online.
Our internal tests says, NG improves DeepScreen greatly (nearly 30 percents improvement).
1- So this wont work in VM even in future?
Yes, NG will probably never work in VM (vmware/virtualbox). We were able to use it inside VM, but it was very slow and CPU must support nested virtualization feature. I don't see it's a big problem you won't use NG in VM.
2- Vista+ and Win8+ so you mean if I have win7 or XP I dont need HW or any other thing to be on because thats what I read from when one says Vista+ systems??
Right now, Beta2 supports only Vista+ (Vista/W7/W8/W8.1) OSes, XP will be supported in RTM (it's older OS and we have to implement some drivers for this OS).
Next, VT-X/AMD-V is required ONLY for 32-bit Win8/Win8.1 OSes and for ALL 64-bit OSes. If you have XP/Vista 32-bit then you don't need VT-X/AMD-V at all.
4- NG disabled in slower systems in RTM so will we have this feature in final irrespective of system specs in the final?
Probably not, NG component is not so important to publish system requirements on our website. In next weeks, we'll check which systems are good enough for NG.
5 - VT-x is OFF by default on all boards, be it Asus, MSI, Gigabyte or whatelse, so, aside from the enthusiasts, who turn it on, who will actually use NG?
Even if you have VT-X/AMD-V disabled in BIOS, sometimes it can be turned on programmatically. We know exactly how many our users have VT-X/AMD-V enabled (or we can enable it) or without it (on XP/Vista as I mentioned).