"Do I do that by going into system restore???? Then creating a new date?"
No. I mean delete them as the virus maybe in the Restore folders. AVG will not be able to remove this because the restore folders are protected.
Deleting the restore points will also delete the virus.
Click Start, Control Panel, System, System Restore and turn off System Restore, this will delete your restore points. But you cannot then restore your computer to a previous date as you've.....just deleted the restore points.
I'm assuming it is in the restore folder.
If you do not want to delete you restore points then you can delete the file with the restore folder so you could end up saving your restore points (but its a bit of hit and miss). But for this you'll need to know which folder and file the virus infects in the restore folder. AVG should tell you (i do not use it myself).