Hi,
I would like to reproduce this issue but I'm unable to find Picture It! available for download. Is it Microsofts program or I'm looking in the wrong place? If so I found that Picture It! was rebranded as Digital Image a while ago so I briefly tried Digital Image with Avast and they ran together just fine.
Could you please provide more info on Picture It! ? Publisher, version, etc.? A download link would be perfect. It would also come in handy to know what Windows edition (XP, Vista, 7, ...) you use and which version of Avast runs on your PC. Then I can create a scenario as closest to yours as possible.