Charyb,
(1) using the Windows XP firewall. Avast.update is not listed as an exception -- but then neither is it on my computers. I could not find a learning/ autodecide mode and thus went on to
(2) and tried to repair, even though I was sceptical given I had just removed the previous version and downloaded/installed the current one. Result: error message reading "Error processing packages. Please use full update". Which, of course I couldn't do since, as noted, I couldn't connect to the server for the program update attempt either.
So, I tried
(3) and changed the proxy settings to "direct connect". This worked, i.e. it allowed me to manually update the virus definitions. When I restarted the computer it looked like avast did try an auto update (the orange globe rotated and the last update attempt was shown as 0 minutes ago) but I did not get the usual message that the definitions had been updated. I'm guessing this is because there was nothing to update. We'll be checking over the next few days, of course. If the update message does not appear, I'll get back to you again. Unless I do, it appears you have solved my problem. Many thanks.
Incidentally, both of my computers are set to "auto detect", not "direct connect". Go figure.