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
Thanks, hakah, for sharing your configuration. I agree with the helpful comments made here. I too have an XP system I was not ready to stop using, but thanks to great advice on our forums I upgraded free to Linux (lubuntu). I'll get back to this in a little bit.
While continuing with XP, in the meantime, it's better, at least, to use a containment program called Sandboxie Free www.sandboxie.com to isolate your browser thus keeping your system protected until you're ready to make a decision about letting go of XP.
Upgrade your OS to Windows 7 SP1, Windows 8 or 8.1 Update. If you buy a Windows 8 PC, the download from the Windows Store will automatically upgrade you to Windows 8.1 Update 1. If you buy a PC with Windows 8.1, you much update to Update 1 before May 2014.
Same applies if you buy the Windows 8/8.1 DVD installation discs.
Alternatively you can look at Linux distro's; Ubuntu, Linux Mint and various others.
Thanks all for the comments and advice. I will carefully look into them before decision is to be made.
I am also using Firefox with add blocker in conjunction with IE 8.
I have installed WiseCare365 but remove later as afraid of changing my registry files to cause errors.
software182 : Yes, I am hakah from nsane. I am also a member of Tipradar.com/Forum. Nice to meet you here too.