Very interesting reading or should that be disturbing reading.
I think this note is very relevant.
Note: Usually, only AV/AT scanners that feature an unpacking engine or a similar efficient technology can reliably detect compressed or crypted trojans.
I believe that avast has one of the better supported list of unpackers?
Whilst I'm unsure how we get around encrypted viruses, but an encrypted virus has to also have something to decrypt it and in its decrypted form in memory or otherwise, perhaps it can be detected.