are you trying at different times of the day? It could be that you are connecting at a time when their servers are overloaded. If you can't get it to work, I would try uninstalling and redownloading from their website.
I'm not having any trouble here with AVG v7. What version are you using? (for info: AVG 6 is no longer supported - no virus database updates anymore, so you'd have to go to www.grisoft.com to download v7 if this is the case)