system
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The issue seems to be caused by a missing aswFsBlk.sys file in Windows\System32\Drivers.
I looked in the update log and noticed that’s where it was supposed to be installed. It also resides in Program Files\AVAST Software\Avast\setup\INF.
Unfortunately, copying it into the Drivers folder (after restarting Windows XP in Safe Mode) does not fix the issue.
I rolled my system back from a 12/16 backup, and aswFsBlk.sys was in the Drivers directory for v2008.
Probably another install script issue (the first being the SSL email certificate being removed for Thunderbird 24.2.0) that should be looked at by the install team.
Seems to be isolated to Windows XP. I did not experience either issue installing v2011 on a Win 7 Home Premium laptop.