AVG is just not anywhere near as good as a memory scanning AV ... Your risking your systems big time using it!
Um, Excuse me, but we are talking about a resident application here, not a demand scanner.
And typically it scores about as well as any good AV at independent testing, eg
www.av-comparatives.org (So do the other members of the "big 3" free AV's.)
Sure it will detect generic's but it dosent have the ability to catch a modification or executing APP which is pretty much what causes the dangerous infections..... beware the free in this case!
It will catch anything for which it has a signature in the database, plus the heuristics and integrated AS module will catch a bit more besides, which includes a reasonable crack at polymorphics/zero day threats.
As for "catching a modification or executing APP", every time you open any program/execute any file, you are executing an APP. To monitor that for safety, you'd need a program appropriate to the task, which AVG doesn't claim to be.
if you dont want virus's dont use IE or Outlook
IE7 can be configured to operate at least as safely as some of the alternatives, including Firefox. Can't speak for Outlook, don't use it. (Do use Outlook Express.)
So perhaps you better explain more completely what you mean.