Most probably false positive:
picasaweb-current-setup.exe, 5 297 976 bytes
MD5 53fc47e9b0f81adb0328f4bdf068ded4
Win32:Xanax-C [Wrm] detected.
Avast 4.7.942, VPS 000714-0
Jotti (except for Avast) says the file is clean.
X.
Hello 
Please send the file to virus@avast.com in password protected archive and as a mail subject write “False Positive” 
You could also check the offending/suspect file at: VirusTotal - Multi engine on-line virus scanner. You can’t do this with the file in the chest, you will need to move it out. I feel virustotal is better as it uses the windows version of avast (more packers supported) and there are currently 29 different scanners.
If it is indeed a false positive, add it to the exclusions lists (Standard Shield, Customize, Advanced and Program Settings, Exclusions) and periodically check it (scan it in the chest), there should still be a copy in the chest even though you restored it to the original location. When it is no longer detected then you can also remove it from the Standard Shield and Program Settings, exclusions.
File’s been sent.
X.
Using the exclusions will allow you to continue using the program, Restore the file from the chest (you may get an alert, choose no action) and add it to the exclusions outlined above.
Yes, it was false alarm. It’s fixed in the 0714-1 VPS released today. Sorry for it.