i have the same problem as you. I downloaded the file direct but my Windows 98 cannot open the file, so I deleted it. I will just wait and maybe the server will finally be available when most people have updated.
I have just dowloaded direct from the update button in AVG7 and it dowloaded after a short pause and then received the usual (when working correctly) pop-up screen showing the 3 sets of files it was about to install, pressed ok and all went ok. I had been trying for ages with strange messages saying I had not config. update/ server settings properly. Earlier tried directly from site, as goff2 had, that would not work. If at first...try, try again, GOOD LUCK!