Thanks teameaves!!!!
I was almost ready to send my unit back to Buy.com, when I saw your thread about AVG - this software just blocks writing to HD without even notifying the user!!! I am so mad right now, but at least I got my software to work and update.
Anyone looking for a copy of software - send me an e-mail to *** Email address is removed for privacy *** and I will reply with the installation file.