Unbelievable - here is what happened. Ran malwarbytes again - this time in safe mode - got through it and it deleted Trojan Win32 Agent. Then I deleted AVG and installed Microsoft Essentials. Ran a full scan and it took almost six hours for it to finish. It finally finished and it found three items - one low and two severe:
I press the remove button and halfway into the removal the computer shuts down. So I reboot it in safe mode again and luckily under history the three items were still there and the action taken said "allowed" - I was able to take action again and this time it says removed.