Can't run AVG!! "...prevented by a software restriction policy"

Hello,
I am trying to debug this problem on a friends computer. I would appreciate any help you can provide as this issue is beyond my ability to resolve. Listed below are the computer specs and what I have done thus far.

Windows XP Home edition 32-bit
Service Pack-3
AMD Athlon 64bit x2

AVG Does not show in the task bar.
Malwarebytes installed and run.
Adwcleaner installed and run
FRST installed, stops at "Processing Files: Extra check..."

Thank you for any help you can provide.

James