Apparently what AVG found was in your System Restore. I do not know if you are all clear. Did you recently clean a rootkit?

I am not aware of 'cleaning' anything on this comp.  Viewed history of AVG scans and saw no mention of Rootkits previously.  I heard of system restore, but never acessed it or know anything about it.  How would something get in there, I ONLY surf on the sites that have the green star with check mark that AVG is indicating is safe, I don't click on anything  in Emails if I don't know what it is.  I'm rather dumbfounded here!

System Restore backs up system files of certain extensions (.exe, .dll, etc.) and saves them for later recovery and use. It also backs up the registry and most drivers.One thing to consider is that perhaps AVG reported a false positive. If you are still getting messages about malware being in System Restore, I suggest flushing System Restore so that you can start fresh.

If everything else is running well....
You did not mention your  operating system, but to flush the XP System Restore Points:
(Using XP, you must be logged in as Administrator to do this.)
Go to Start>Run and type msconfig Press enter.
When msconfig opens, click the Launch System Restore Button.
On the next page, click the System Restore Settings Link on the left.
Check the box labeled Turn Off System Restore.

Reboot. Go back in and turn System Restore ON. A new Restore Point will be created.