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READ: AVG Browser Configuration Tool Removes AVG Secure Search, AVG Toolbar and Restores Browser default Settings2.
Once any identified malware threats are spotted and removed, try the AVG Anti Virus update again.
The problem may be caused by an issue with the AVG Anti Virus program itself rather than anything external.
There's also a possibility that the AVG site itself is experiencing difficulties and cannot push the required updates out to users.
If this is the root cause of your issue, you should see a notice to this effect on the AVG website along with a timescale for a fix.
Although you can manually update the program, AVG Free Antivirus has auto-update options that enable you to automatically schedule the program to install any available updates and the latest virus definitions on a daily basis.