Where did you get that version of ZA? Scroll to the end of
this page. That's where you will get the latest ZA v7.0.483.000 for XP. For Vista there's a different version but its still not the version that you said.
The conflict is most likely because of using the wrong version. You may want to
read this.
Only if you are using AVG antispyware for
real time protection with ZA Internet Security Suite or ZA Pro or ZA Anti-Spyware, then it might be conflicting with the ZA's antispyware. Then you can try turning off ZA's antispyware. If you are using AVG for on-demand scans only, then don't turn off ZA's antispyware.