How old is your operating system? Is it windows 98?
Where is your Program Files folder? Your screenshot of the alert says that it is in the C:\ directory.
There is no reason that it would not be in your screenshot of the C:\ directory.
What is the letter on your other drive that the Windows directory is on?
Is that a whole other hard drive with another different C:\ directory?
Btw try to update to SP3 if possible because there are some recent change on the security if im not wrong. So more your XP or any OS is updated more its sure to be more protected.
You don’t have to be running a scan for avast’s resident protection to alert. What it means is that the file was being activated and before it is allowed to run avast would scan it.
If you have XP, vista32bit or Win2k, you could enable a boot time scan. Right click the avast icon, select Start avast! Antivirus, a memory scan will take place followed by the opening of the Simple User Interface, Menu, ‘Schedule boot-time scan…’ Or see http://www.digitalred.com/avast-boot-time.php.
Trojans generally can’t be repaired (either by the VRDB or avast virus cleaner), because the entire content of the file is malware, so it is either move to chest or delete, move to the chest being the best option (first do no harm). When a file is in the chest it can’t do any harm and you can investigate the infected warning.
The VRDB only protects certain files, mainly .exe files, it doesn’t protect data files or all files, it is not a back-up program, so there are going to be many occasions where repair won’t be an option.
Only true virus infection can be repaired, e.g. when a virus infects a file it adds a small part to it, provided that file is one that avast’s VRDB would monitor and you have run the VRDB, then it may be possible to repair the file to its uninfected state.
However, for the most part so called viruses, trojans (adware/spyware/malware, etc.) can’t be repaired because the complete content of the file is malicious.