I first raised this within the 'AVG Warning' Thread, but as I have now found the solution, it may be of general interest.
I blamed, wrongly, the upgrade I carried out from Norton Anti Virus 2005 to 2006 for the loss of my Windows XP Home Update, System Restore and User Accounts. Also, I couldn't validate my genuine Windows operating system, and therefore receive downloads. It was effecting the ActiveX function.
I found the solution in one of the Microsoft Community Newsgroups about Update, and discovered that the fault was caused by an October Windows Update! Here is the input from Ottmar Freudenberger which worked for me:
'This happened after the installation of the October round of updates?
If that's true, try the following:
Download the file OLEfix.zip available here (it is a registry file
that origin from MS Support, and it has fixed the ActiveX problem
for several people, getting this problem after installing KB896688):
http://patch-info.de/IE/Downloads/OLEfix.zip
Extract it and double click the contained OLEfix.reg file. Click Yes
on the dialog box that asks you if you are sure to add the information
in OLEfix.reg to the registry.
You may have to reboot your machine afterwards.'
I did reboot afterwards, and everything now works perfectly.
ERB