One wonders what the free version of AVG is good for in that case (probably a lot more than no AV at all)?
Are you up to date on IE updates / patches? Is XP?
To be honest, you might want to consider an OS and browser change. XP's last service pack was five years ago, and their SP2 was nine years ago. With IE8, you are looking at last stable release in 2010.
I changed to IE8 from IE7 and hated it, so switched to Firefox, after trying out Opera, Chrome and Safari. I can't speak for the others beyond a week of testing and other very occasional usage, but I like FF and a lot of its stuff. Once you get past the little learning curve of having a new browser, you really notice how unappealing IE (6, 7, 8, 9) is in comparison. Not tried IE10, so cannot comment.
Prior to the change, I was a "I'll stick with IE, because it works, and that'll do me". Now I have all five main browsers installed, and while I use FF for 99.5% of my browsing, there's the odd time I use IE9 for proprietary stuff.
I really do recommend a more modern setup. I'm on Vista, with a Core 2 duo, and it's a fast enough, clean enough system, but I'll be looking to change from 2014 onwards. That will be the five year mark.
P.S. - Even IE9 would be better from a security perspective, but not sure if XP and IE9 are workable.