can you post here e.g. last 50 lines of your setup.log file?
maxx here is info. Signing off now it's late.
12:06:09 nrm/int SYNCER: Type: use IE settings
12:06:09 nrm/int SYNCER: Auth: another authentication, use WinInet
12:06:09 dbg/int while trying to get file 'servers.def', error 0x20000004 has occured, try 4
12:06:11 nrm/int ERROR:HttpGetWininet, catch returned 0x00002EFD
12:06:11 nrm/gen InvalidateCurrent: invalidated server 'Download930 AVAST Server' from 'main'
12:06:11 nrm/gen SelectCurrent: selected server 'Download921 AVAST Server' from 'main'
12:06:11 nrm/int SYNCER: Type: use IE settings
12:06:11 nrm/int SYNCER: Auth: another authentication, use WinInet
12:06:11 dbg/int while trying to get file 'servers.def', error 0x20000004 has occured, try 5
12:06:13 nrm/int ERROR:HttpGetWininet, catch returned 0x00002EE7
12:06:13 nrm/gen InvalidateCurrent: invalidated server 'Download921 AVAST Server' from 'main'
12:06:13 nrm/gen SelectCurrent: selected server 'Download655 AVAST Server' from 'main'
12:06:13 nrm/int SYNCER: Type: use IE settings
12:06:13 nrm/int SYNCER: Auth: another authentication, use WinInet
12:06:13 dbg/int while trying to get file 'servers.def', error 0x20000004 has occured, try 6
12:06:15 nrm/int ERROR:HttpGetWininet, catch returned 0x00002EE7
12:06:15 nrm/gen InvalidateCurrent: invalidated server 'Download655 AVAST Server' from 'main'
12:06:15 nrm/gen SelectCurrent: selected server 'Download967 AVAST Server' from 'main'
12:06:15 nrm/int SYNCER: Type: use IE settings
12:06:15 nrm/int SYNCER: Auth: another authentication, use WinInet
12:06:15 dbg/int while trying to get file 'servers.def', error 0x20000004 has occured, try 7
12:06:17 nrm/int ERROR:HttpGetWininet, catch returned 0x00002EE7
12:06:17 nrm/gen InvalidateCurrent: invalidated server 'Download967 AVAST Server' from 'main'
12:06:17 nrm/gen SelectCurrent: selected server 'Download201 AVAST Server' from 'main'
12:06:17 nrm/int SYNCER: Type: use IE settings
12:06:17 nrm/int SYNCER: Auth: another authentication, use WinInet
12:06:17 dbg/int while trying to get file 'servers.def', error 0x20000004 has occured, try 8
12:06:19 nrm/int ERROR:HttpGetWininet, catch returned 0x00002EFD
12:06:19 nrm/gen InvalidateCurrent: invalidated server 'Download201 AVAST Server' from 'main'
12:06:19 nrm/gen SelectCurrent: selected server 'Download961 AVAST Server' from 'main'
12:06:19 nrm/int SYNCER: Type: use IE settings
12:06:19 nrm/int SYNCER: Auth: another authentication, use WinInet
12:06:19 dbg/int while trying to get file 'servers.def', error 0x20000004 has occured, try 9
12:06:21 nrm/int ERROR:HttpGetWininet, catch returned 0x00002EE7
12:06:21 nrm/gen InvalidateCurrent: invalidated server 'Download961 AVAST Server' from 'main'
12:06:21 nrm/gen SelectCurrent: selected server 'Download932 AVAST Server' from 'main'
12:06:21 nrm/int SYNCER: Type: use IE settings
12:06:21 nrm/int SYNCER: Auth: another authentication, use WinInet
12:06:21 dbg/int while trying to get file 'servers.def', error 0x20000004 has occured, try 10
12:06:23 min/int tried 10 servers to get file 'servers.def', but failed (0x20000004)
12:06:23 min/fil GetNewerStampedFile:GetFileWithRetry failed: C:\WINDOWS\TEMP\_av_proI.tm~a02276\onefile, servers.def, error: 0x20000004
12:06:23 min/pkg Tried to download servers.def but failed with error 0x20000004.
12:06:23 min/pkg LoadAllDefs failed 0x20000004
12:06:23 min/gen Err:Cannot connect to download961.avast.com (unknown:80).
12:06:23 nrm/pkg Transferred: files 22, bytes 0, time 134704 ms
12:06:23 nrm/pkg Retries: total 20, files 2, servers 21
12:06:23 vrb/int Sending stats '
http://74.54.25.2/cgi-bin/iavs4stats.cgi': 20000004 0
12:06:23 vrb/fil NeedReboot=false
12:06:28 min/gen Return code: 0x20000004 [Cannot connect to 74.54.25.2 (74.54.25.2:80).]
12:06:28 min/gen Stopped: 03.12.2008, 12:06:28