Above information is my pc configuration. Anything missing which is required to be submitted, please advise at your convenience!
Where do we start
hakah ? ...well, like SifhX pointed out, if your choice of browser has to be IE, please update it urgently!, next consider switching to a new browser (anything other then IE really, Firefox is a one great option which you mention). I would also consider cranking that little UAC slider all the all the way up to max power, it may be a little annoying, but it's probably one of the best defenses you can use...
AVG is better then nothing and everybody has a preference, but have you looked into any other real-time options? you may find there a re some great products out there that will provide you with better protection/detection and are still free.
Good on you for using some key encryption, Zemana is a nice add on from a security standpoint.
...Then I guess it mostly comes down to the user, you can have all the barricades in the world, but if the enemy talks you into letting them in through the back gate, well none of it was any use in the first pace. There are some great guides and tips in the forums here about good practices to help keep you safe, I recommend you read this one
Your Mouseclick Matters Guide