I have seen it, but you won't like what I had to do to fix it. I needed to un-install SP2 and reinstall it. Also, I got rid of Norton systemworks, but that caused even more problems, because Norton imbeds itself all over your computer from the registry to other primary windows functions. I'm not sure if the Antivirus does the same. Then, I ended up bringing my computer back to factory install. Needless to say, I'm not a big fan of Nortons anymore.
Anyway, my advice would be to at least turn off Norton if you can, or get rid of it. Keep AVG active, then uninstall LW, reinstall SP2, after updating SP2, reinstall LW and allow the program to work thru the firewall. Don't forget to run a virus and spyware scan after un-installing SP2.