Uninstall AVG Anti Virus completely from your system using the "Uninstall a program" link in Control Panel, then reinstall the software using the latest version from the AVG website.
This should be enough to replace and restore all of the software's core components and remove any temporary data cache that was preventing updates from proceeding normally.
I didn't see the above post with the "fix" last night (thanks anyway) so I went to bed and awoke this morning to find that my AVG was working just fine again -- so the "AVG update" is apparently "ready & working." (Odd, though, that my roommate's computer ~ that also uses AVG ~ was not affected by a missing file as was mine.
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