...With the 'old' version (blue) I got popup box saying new virus definition recieved....this never seems to happen with the new version (yellow)..
Chris, For the record, the new 5 series is orange, and if you have automatic updates set (the default) you do get a pop up each time it is updated (on XP at least) and you also get a spoken audio confirmation as well.
By the sound of it, your installation is not working properly. My suggestion would be to download the complete new version from the links on the avast site, and also the removal tool, then uninstall the current installation, run the removal/clean up tool to remove any residue of version 4.8 and version 5, then reboot and install the latest build. When the install has finished, make sure you reboot.