George , guess you're like me with regard to using a "back up" anti-spyware app. It's early days for AVG and this particular problem and I'm going to keep Spybot , for the short term anyway , and follow option 2 and ignore the "warnings". Maybe , just maybe , AVG will address this problem as they could lose a lot of users if the number of complaints are anything to go by.
If you prefer the option to remove Spybot i would suggest you give... Malwarebytes Anti-Malware...a try. ( think this'll please ourstanley ).
Alternatively , I'm testing out... hazard shield...at the moment so if you enjoy trying out and testing you could give it a bash.