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Are your virus definitions up to date?
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Are you using the current (new) version of Avast (6.0.1125)? Did you upgrade or do a clean install?
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If yes to the above questions, is your firewall (FW) blocking anything related to Avast?
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If no to question 3, reset your setting for Avast in your FW. Does this fix your problem?
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Do you have your Avast settings set for dial-up?