Although I was unaffected by the bug, I called the technical support, because it is free now, and gathered some information.
1.) The bugged update was up for a week before the bug was discovered, meaning the affected people could not contact AVG to make sure the software developer was aware of the problem.
2.) It is gone now, and I just updated AVG and I have windows 7 64-bit, not a single problem.
3.) Technical support calls are free now, so take down their number and they will walk you through the processes to fix a crash if it occurs.
Essentially, the problem was that AVG recognized a vital Windows program as a threat, isolated it, then killed it. This created an infinite crash loop, as Windows would try to restart, and then crash, over and over.