The Rootkit notifications had been stopped once the Avast4.ini had the exclusion C:\passwo~1.exe; ;
which we never discovered where the ; ; came from as I had only entered the path. At least this worked.
Just updated to 4.8.1296 and the RootKit notification popped up again. I told Avast to IGNORE and DON’T SHOW ME THIS AGAIN. Checked the Avast4.ini and the C:\passwo~1.exe; ; was still in there however
C:\passwords.exe had been added. So it looked like C:\passwo~1.exe; ;C:\passwords.exe
So removed the entire line. Rebooted and Avast then gave the Rootkit notification, so I selected
IGNORE and DO NOT SHOW ME THIS AGAIN and it added C:\passwords.exe to the Avast4.ini.
So far after several reboots the issue has not come back.
Shields - Custom - Advanced has C:\passwords.exe and Settings - Exclusions has C:\passwo~1.exe
both of which were as I had originally entered them and these had not changed.