1. Your initial ZA setup was correct answer No for free version as it doesn't have a privacy module in it. So you should not have answered Yes as this disables the transparent web shield function and you would have to manually set your browser/s to use the web shield proxy.
- ZONE ALARM - AVAST Web Shield compatibility dialogue - Install/Update Question - YES or NO
If you are using ZoneAlarm Free you should click NO, because privacy features are not present in ZoneAlarm Free this will not turn off web shield transparent mode proxy.
Use a text editor and edit the avast4.ini file, the default installation location is C:\Program Files\Alwil Software\Avast4\DATA\avast4.ini (I would advise you copy avast4.ini before editing it, just in case).
Locate the line containing ZoneAlarmCompatibility= and delete that line. Save the edited avast4.ini file.
If you are using ZoneAlarm Pro and Privacy Control in ZoneAlarm is set to High and if you click YES in avast compatibility dialogue box the transparent mode proxy in web shield will be turned off you have to manually configure browser to access internet. To manually configure your browser watch instructional video
For IE - broadband users: -
Tutorial - Web Shield Proxy Set-up for IEFor IE - dialup users -
Tutorial - Web Shield Proxy Set-up for IE (Dial-up)For Firefox users -
Tutorial - Web Shield Proxy Set-up for FirefoxIt would probably be easier to reinstall avast and answer No than manually setup any browsers.
2. So at least the reboot.txt was present, which normally after the reboot it should go. There are possibly some registry entries which are calling for a reboot, you can also check this registry entry (right after computer restart):
HKEY_LOCAL_MACHINE\System\CurrentControlSet\Control\Session Manager, if it contains "PendingFileRenameOpertaions".
Check its contents and if there's only "reboot.txt" from avast4\setup folder, delete PendingFileRenameOperations, don't delete any other key.
Back-up (export) the registry key before you edit/delete, just in case.
If this seems too frightening or challenging, Download the avast! Uninstall Utility,
find it here and save it where you can find it.
Uninstall, reboot, run the uninstall utility, reboot, install, answer No to the Zone Alarm compatibility issue, reboot.