Plugger - I think the reason AVG can't remove it, it's an .EXE file and it's in use by your computer.
Go in through your search option and locate SETUP_TD.EXE and/or td.exe try to rename them then delete them/it. Careful you don't delete OS files. I did a search on my win2000 OS and it has no such files so I don't think the files you named are OS XP or 98. .......td.exe looks like the culpert though.
If that doesn't work try to go in to task manager(ctrl-alt-del)and "end task" if you can identify it/them, then go back and rename and delete it/them. At this stage, once you terminate these malicious apps, AVG should be able to handle them also. most anti-virus prog's can't handle any files that are in use.
If that doesn't work you may have to reboot in safe mode and then you may be able to delete it/them without even changing the file names.
That C:\SETUP_TD.EXE/files look like directories so you may have to go in and delete them as well.
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