Updates won't work

Are you getting a specific error?  If so, please type in what it says.

melmitt,

Download the same AVG update with Firefox
http://www.getfirefox.com

This will determine if problem is system or IE7.

Going to the Windows Update site doesnt work?

Are you the full administrator of your workstation or PC ?
If not check with your Administratior. You may have a directory services or Group Policy issue affecting your ability to do the windows updates.
Try creating a new Administrator user who has full access to all the major security groups you may have. Make sure you have  no firewall issues. Try shutting down any firewalls Microsoft or other brandnames e.g Checkpoint, Norton, CA .  Then try to access the Windows Update page and see if its working. More than likely the workstation or group policies have been messed with.
I suppose you may have accidently disabled some IE active x settings also. Check those as well
three places under  Internet sites, Trusted Sites and Advanced under Tools - options from the IE menu
Check the settings in all three places. Then check the following:
The group polices editor:
click start
click run
type:  
C:\WINDOWS\system32\secpol.msc    or %SYSTEMROOT%\system32\secpol.msc
click on OK
That brings up the security policy for the workstation.
You may find it easier to just create another Administrator user account  like Admin2
Then try your windows update
Hope that helps!

Thanks for all the help.
1.There is no error reported.
2. Have downloaded and installed Firefox but it appears not able to get back to the server - it won't start
3.Going to the Windows update does not work - tried it.
4.Will try all you suggest in the morning rssdds and let you know how I get on.

Cracked it today!  The user had had Norton Internet Security on her machine.  Although she thought she had uninstalled it there was still a file called EPersist running and I could not delete it.  So using an unlock program we managed to get rid of the active file.  Now everything is restored.  Thanks for all your help - I tried everything you suggested rssdds but no luck.  However I appreciate the time you gave me so I am going to award the points to you in the next day or so.

melmitt,

Glad you found the problem.  If I had know you had NIS, I will told you to disable or uninstall it.  Next time, you can use SymNRT to remove Norton programs.

SymNRT Cleanup Utility
http://www.majorgeeks.com/Norton_Removal_Tool_SymNRT_d4749.html

Thanks War1.  I didn't know we had NIS until I did some closer investigation.  Client did not tell me that she had previously used it.  Have downloaded the Removal Tool File