I thought AVG is an antivirus program? How could it scan traces/ activities of spywares?

Just a sidenote, I have been using ver. 1.5 and I have no problems whatsoever.

You should post it in the program creator's forum (but I doubt they will answer you if it is 'really' a spyware thing).

Posting it in those forums with programming/software expert forumers would help however.