Fix for avg won't update!!!
I got this fix from the AVG free forum. It worked for me.
Re: AVG 8.5 Free Edition updation problem: Receiving error "connection with update server has failed"
Posted by: avgfan56 (IP Logged)
Date: May 1, 2009 10:21PM
I was fighting with this same problem since upgrading to AVG 8.5 a couple of weeks ago on my Win XP machine. I could not do updates on any of my anti-virus, spy, ad, or malware. I also found out that I could not run regedit, msconfig, or a console window. After searching the net high and low for help, I finally found bleepingcomputers.com and they had the solution in one of their posts regarding the failure of regedit to run.
The key info was in the Apr 22 2009, 10:35 AM and Apr 23 2009, 02:21 AM posts from farbar. To get regedit to run, I had to go to the C:\Windows folder and rename regedit.exe to copy.exe. I then double-clicked copy.exe and the registry editor opens. In the left pane, I navigate to the following key:
HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Windows NT\CurrentVersion\Drivers32
I highlight the Drivers32 sub-key. In the right pane under Name there is a value named aux. I looked at the entry for aux and saw that it was not set to wdmaud.drv as required, but in my case was set to ceito.nly. (This could be anything depending on the virus that caused the problem.) I right clicked the aux entry and selected Modify and typed in the Value Data box: wdmaud.drv. I clicked OK and close the registry. After rebooting, I delete the file: C:\WINDOWS\ceito.nly and I found that the reboot had restored the regedit.exe file to its proper location, so I simply deleted the copy.exe I had created.
Regedit, msconfig, and the console window now all work as do all my anti-malware updates including AVG 8.5.
Give this a try and see if it helps you!