Updated:
Added the r_server.exe file to the exceptions. So now it no longer deletes it but it still doesn't allow it to run. As soon as it's loaded to memory the Avast dialog box pops up and says virus, and I tell it no action. When I try to run it again, I can't. It says I have no access to run the file.
Maybe uninstall/reinstall avast?
Another strange thing I just discovered is if I move the slider to "custom" and click ok, and I go back and check it, it's back to "normal" again.