I would suggest a clean re-install again.
Though there hasn't been a program update recently (program: 4.8.1229 23.7.2008), so has this only just happened ?
Download the latest version of avast
http://www.avast.com/eng/download-avast-home.html and save it to your HDD, somewhere you can find it again. Use that when you reinstall.
Download the avast! Uninstall Utility,
find it here and save it to your HDD.
1. Now uninstall (using add remove programs, if you can't do that start from the next step), reboot.
2. run the avast! Uninstall Utility, reboot. If step 1 failed it may be necessary to run this from safe mode, once complete reboot into normal mode.
3. install the latest version, reboot.