Edit: There have been no cases of major false positives since November, this thread has become redundant and unsticky'd

Some of the latest AVG signature updates have been creating false positives on completely legitimate files.

This affects both free and Pro versions of both AVG 7.5 and AVG 8

Report have been of AVG reporting false positives regarding Adobe Flash player AVG offers free license and another false positive | Security and the Net This only a few days after it recommended users to delete the critical Windows operating file user32.dll, which if deleted will send the PC into an endless loop.

AVG virus scanner removes critical Windows file | Security and the Net