Sun123 -
I assume you're on WinXP? If you are and you're worried that deleting it might have some adverse effect, but equally want to delete it, then just create a system restore point first:
Click on Start --> All Programs --> Accessories --> System Tools --> System Restore.
Just give the restore point a name that you'll know. Once thats done (takes about 5 seconds, literally), delete the file in AVG.
That way, if there are any problems (highly unlikely), you can restore the system to pre-file deletion state, and you're no worse off.