Proxy server virus: (127.0.0.1 port 8118)

[VWH1]

Started having trouble with skype not connecting then Dropbox as well suggestions that it was the firewall were proved wrong when it was turned off and the problem continued.  I canme across this reference "Proxy server virus: (127.0.0.1 port 8118)".
Does anyone know about this and does avast protect against it please?
Thought I would ask before starting to look elsewhere. 
I am using 17.8.2318, Initially when I tried to check Avast update it returned an unknown problem with connection and when I checked Avast Lan settings I found they were actually set to 127.0.0.1 and port 8118.  I changed the connection to direct connection and seemed to resolve the issue but it seems like I have three infected programmes including Avast - any suggestions while my virus database is updating

Cheers,
Vic

[Pondus]

If you want help, follow instructions and attach requested logs

https://forum.avast.com/index.php?topic=194892.0

[VWH1]

Cheers Pondus but I have resolved the issue now.  My main concern is that it got into Avast in the first place and amended the connection details.  I have always had confidence in Avast Internet Security and am afraid it has taken a bit of a dint now.  With the connection re-established all the Avast updates came down as normal, I can only hope they have plugged the hole and resolved the issues.

[Pondus]

No security program have 100% detection or zero false positive

You may still have what changed the proxy settings so I recomend attaching the requested logs