Yes, that's the red pop up I sometimes get when the definitions won't auto update either at start up or during an update attempt during the day.
Your second image, I don't have anything checked under "update parameters," but I do have Direct Connection No Proxy selected. Is that ok?
You're right, the standard Windows Firewall is running and it would be whatever standard settings are present during original OS install. I meant that I don't have anything additional installed or running nor have I tampered with what's in Windows.
This XP machine has only ever had Avast. I'm not positive, but I believe the release was on some middle version of 5.0 when this machine was built. Again, I am not positive of that since it was awhile ago. Malwarebytes was added less than a year ago when Avast didn't catch a virus that was in a banner advertisement. (I was already having some difficulties with Avast before that virus, btw. And Malwarebytes got rid of it easily)
Could a graphics card driver conflict be causing or at least perpetuating some of this? I did start having an issue with my graphics card after a driver update (my computer will restart itself sometimes if I have too many browser tabs or too many graphic programs open editing photography). Please note that I was already having problems with Avast PRIOR to that graphics driver update though (it's one of the reasons I did update the driver in the first place). I've been trying to fix the graphics driver issue, but so far have not been able to.
Everything with Avast did update fine this morning upon start-up.