Welcome to TechSpot! I'll be glad to help with the problem. Seems like all the AVG users are getting this alert!

But because the AVG finding of Win32/Heur can also be an indication of a more serious malware infection, I'd like you to run the following first:

Run Eset NOD32 Online AntiVirus scan HERE

1. Tick the box next to YES, I accept the Terms of Use.
2. Click Start
3. When asked, allow the Active X control to install
4. Disable your current Antivirus software. You can usually do this with its Notification Tray icon near the clock.
5. Click Start
6. Make sure that the option "Remove found threats" is Unchecked, and the option "Scan unwanted applications" is checked
7. Click Scan
8. Wait for the scan to finish
9. Click on "Copy to Clipboard"> (you won't see the 'clipboard')
10. Click anywhere in the post where you want the logs to go, the do Ctrl V. The log will be sent from the clipboard and pasted in the post.
11. Re-enable your Antivirus software.
    NOTE: If you forget to copy to the clipboard, you can find the log here:
    C:\Program Files\EsetOnlineScanner\log.txt. Please include this on your post.

===================================
Please follow with the steps in the Preliminary Virus and Malware Removal thread HERE

When you have finished, leave the logs for review in your next reply .
NOTE: Logs must be pasted in the replies. Attached logs will not be reviewed.

Important!
Please do not use any other cleaning programs or scans while I'm helping you, unless I direct you to. Do not use a Registry cleaner or make any changes in the Registry.

I would prefer if you give me the entire logs- not excerpts:

Please download OTMovit by Old Timer and save to your desktop.

• Double-click OTMoveIt3.exe to run it. (Vista users, please right click on OTMoveit3.exe and select "Run as an Administrator")
• Copy the file paths below to the clipboard by highlighting ALL of them and pressing CTRL + C (or, after highlighting, right-click and choose Copy):
  
  Code:

  :Files 
  C:\Users\Sally\AppData\Local\Temp\jar_cache8061832944302896600.tmp 
  C:\Users\Sally\AppData\LocalLow\Sun\Java\Deployment\cache\6.0\0\3a9c5000-3855589f
  C:\Users\Sally\AppData\LocalLow\Sun\Java\Deployment\cache\6.0\23\160ba957-15d46ed5
  C:\Users\Sally\AppData\LocalLow\Sun\Java\Deployment\cache\6.0\37\170f8765-23a5bf0f
  :Commands
  [purity]
  [emptytemp]
  [start explorer]
  [Reboot]

• Return to OTMoveIt3, right click in the "Paste Instructions for Items to be Moved" window and choose Paste.
• Click the red Moveit! button.
• A log of files and folders moved will be created in the c:\_OTMoveIt\MovedFiles folder in the form of Date and Time (mmddyyyy_hhmmss.log). Please open this log in Notepad and post its contents in your next reply.
• Close OTMoveIt3

If a file or folder cannot be moved immediately you may be asked to reboot the machine to finish the move process. If you are asked to reboot the machine choose Yes.
=====================================
To clear the Java Plug-in cache:

• 
  [1]. Click Start > Control Panel.
  [2]. Double-click the Java icon in the control panel. The Java Control Panel appears.
  
  [3].Click Settings under Temporary Internet Files.The Temporary Files Settings dialog box appears.
  [4] Click Delete Files.The Delete Temporary Files dialog box appears.
  
  There are three options on this window to clear the cache.Check all.
• . Delete Files
• .View Applications
• .View Applets
  [5]. Click OK on Delete Temporary Files window.
  Note: This deletes all the Downloaded Applications and Applets from the cache.
  [6]. Click Apply> OK on Temporary Files Settings window.

Note: If you want to delete a specific application and applet from the cache, click on View Application and View Applet options respectively.
=================================
I'm not sure what is happening with AVG/Win32/Heur: What we always have to be concerned with when there is this finding is that it frequently indicates a Virut infection- a nasty file infector. It can possibly indicate another file infector, Ramnit, so we aways have to take it seriously.

You should know though that game files and downloads frequently contain malware.

Please go ahead with the scans in the removal thread I left. That will show me what is on the system.

Please check my post here: http://www.techspot.com/vb/topic162350.html

You're very welcome! That's good to hear! This is not the frst time AVG has done this!

You can remove OTM if it's still on the system. I think that was all you used.