I would suggest waiting until they fix it. AVG already have a fix for this problem (according to an email they sent me, and also various posts around the web) and will include it in their Service Pack 1 which, they told me, is due to be released 'soon' (they told me this at the end of April). It can't be much longer, one would think!
Alternatively, you can install AVG8 and simply ignore the activeX warnings you get (there may be a very large number of them). I think most people who've upgraded to AVG8 are probably doing that. I would not myself remove Spywareblaster, because it's a program I trust, and it provides an additional layer of protection.
By the way, I've seen a number of recommendations NOT to accept the toolbar during the installation. When I eventually upgrade to AVG8 myself (after SP1 has come out), I shall be following that advice.
Edited by Alan D, 23 May 2008 - 03:24 PM.
Windows XP Home SP2; AVG 7.5 Internet Security Suite (AV/AS r.t.p, and firewall); Windows Defender (r.t.p on); SuperAntispyware Free; a-squared Free 22.214.171.124; Spybot 1.4 (Immunised, but no Tea-timer); AdAware SE Free; AVG Anti-Rootkit Free; Spywareblaster; MVPS Hosts file (with HostsMan); McAfee Site Advisor.