Avast ask me to update my verison of Internet Explorer from Version 7.0.6 to 8.0

Do I need to update my Windows XP to the newer version of Microsoft Internet explorer? I am currently running version 7.0.6000.21335 to the available version 8.0.6001.18702 as suggested by Avast program updater? iIam running the new version of Mozilla Firefox 1.18. I realize the XP’s are not being supported soon and only want critical updates. Please advise. Exactly what does that mean? No more windows update service? How do I effectively utilize my PC and keep it current and useful? Linda

avast is warning you about programs With Security issues and recomend you to update to latest patched version