Tech, thanks for covering this issue so long after the fact. The repair worked for me. I had this exact same problem but not on a freshly formatted disc. Midnight Voyager's problem (sorry you had the problem MV, but it helped me that you posted it, so thanks) kept me from reinstalling along with your help. My problem wasn't on a freshly formatted HD as I stated, but, since MV's was, I know I would have been in alot of trouble without your help. Also thanks to Avast for taking this problem seriously and covering it with the repair tool. Literally, one press of the button and Avast is back running in the system tray...and on reboot too!
Edit...sorry I forgot to say that I am using Windows XP, so this can happen in more than just 7...