AVG Free is antivirus only; the firewall is only available in the paid version. So that's not the problem. And I understand the author to be saying that all Internet access has been lost, not just for AVG's updates.
A couple of choices: Do the normal steps for troubleshooting loss of Internet access, or uninstall AVG, potentially including a system restore to just before the AVG install, and see if that resolves the problem. (I assume you've already done a complete shutdown of the computer and restart, not just a reboot.)
Standard steps for troubleshooting:
1) Reset Winsock and IP stack:
At command prompt, give the following commands (on separate lines):
netsh int ip reset resetlog.txt
netsh winsock reset catalog
Check your access again.
2) ping
www.yahoo.comDo you get a response?
If not, ping 69.147.76.15
Do you get a response? If you get a response to the numbers but not the name, you have a DNS problem. If you get no response to the numbers, but other computers on the network are having no problems with Internet access, then your IP setup is pretty thoroughly messed up. Since it's a brand-new computer, probably the best solution in this case would be to reset to factory conditions (i.e., reinstall the system).
Perhaps others will chime in with additional steps to try, but that's what comes to my mind at the moment.