Other than windows 7 saying it doesn't find an AV, is avast running properly, e.g. showing Secured when you hover over the avast tray icon or open the avastUI ?
If so this is more of an issue with win7 than with avast.
Have (or did) you another Anti-Virus installed in this system, if so what was it and how did you get rid of it ?
Using System Restore can have some unforeseen consequences.