Well ... I have to say ... there's someone who is willing to take a stand!
I just decided to try out this ZA combined firewall and antispyware (free 15 day trial - I'm not parting with money for this) to see if I can recreate the problem seen by Foxabilo.
So I downloaded it and selected the "clean install" (ie it uninstalled my current version of ZA free firewall).
It requested a restart of my system which I allowed.
During restart it asked for permission for avast update to have outbound access, which I allowed. avast automatic update check at restart completed normally. I performed a manual update check of avast ... it performed normally. I removed avast update from ZA programs table. I tried the update again, it worked (no request by ZA ... avast update appeared in the program table again). I removed it again ... tried avast update again, it appeared in the table again, I deleted it again ... you get the picture. Eventually it stayed deleted (but my typing fingers are an inch shorter) and avast said it could not update, but I never was able to produce the screen that Foxabilo posted.
However, with this ZA combined firewall/antispyware product installed there was just no way I could get my browser to connect to the internet (I have no proxy configuration).
I may be an avast evangelist but the best product I ever paid money for is Goback (even though it is now owned by the dreaded Symantec - reaching for crucifixes and garlic). So trusty Goback has restored me within moments back to the point before my adventure with ZA antispyware began. Big sigh of relief ... that product shall not have disk space on my system anytime soon.
I return my thoughts to the comments by kubecj.
While none of us involved in the beta testing reported problems with the update function (and I am one of quite a few users I know of who have upgraded without problems) I am, to say the least, a little surprised that you feel able to dismiss the reports of those who have:
1) simply applied the update to 731
2) find that they cannot successfully update
3) revert to 691 and find their ability to update completely restored
The only way it seems to me that your logic works is if there is some fault or oversight in the process used by avast for installing the update to 731 that has not preserved the user's previous configuration. I hope I am proved wrong.
Just one more thought. Given my experience with trying out the ZA firewall/antispyware combination - you just might want to give that product a little more space in your avast regression testing.