Hello Jon,
The problem found with AVG before was that no data was coming to the application at all, as AVG was blocking the access to the Internet. I haven't heard of any problems caused by AVG where it comes to connection between the application and the device.
It might take a while for the data to come from the application to the device. So maybe you just need to sit and wait? If you disconnect power from the device, remove the batteries for a couple of seconds, and then put it all back and press the "connect to PC" button on the back, you should see the time show up on the WS which is the first sign of a connection.
Good luck,
Stefan Viveen
Fraser Valley Software
Hope, BC Canada