Did you try to install the new version over the top of the old one ?
It may be better to do a clean 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.