So, it looks like we've got an update from Avast that resolves this false positive issue. As I researched this problem looking for an answer, I found multiple instances of Kryptik generating false positive issues in the past. In 2012 it was Super Antispyware, in 2009 it was ESET.
It's worth noting that although this was a pretty big pain for those affected, the issue seems to have been limited to a very small number of Avast users. I sell and support Avast, and I only know of two of my clients that ran into this problem (out of hundreds). In our shop we have EPSP, same update, no issue. I know that is no consolation to those of you who have to clean up after this mess, but it is a fact.
Hopefully those of you who were affected will be able to restore your quarantined files and get back up and running without too much trouble. I think the thing to remember here is that for an AV program to be effective it has to be aggressive and on occasion that can lead to false positives and other problems. If you've been in the network support game for awhile you know that all AV programs have had their issues, whether it be false positives or dirty uninstalls or ineffective protection.
I'd like to thank forum members for their positive suggestions and Avast for a speedy remedy.