Hi,
- Are you able to install the other applications successfully?
As per my research this error message appears if you have traces of previous installation of AVG software.
Download the AVG remover to remove the previous version and then attempt the installation again and check.
http://www.avg.com/us-en/download-tools
The link below also discuss the same issue.
http://forums.avg.com/au-en/avg-free-forum?sec=thread&act=show&id=114995
Hope this helps.