DotNet/Other issues after recent update

After installing the recent update, I'm having several strange issues.  I've even re-installed the software from scratch.  This is a satelite unit, not the admin computer.  I don't seem to have a problem with the admin computer - but we're headed to camp tomorrow and want to take the database with us on my laptop!

1) When clicking on a menu option, the current screen looses focus (greyed out) - I have to hit ALT to bring up the new window.
2) Uploading database just hangs.  The window "Uploading database" - checking database status just hangs - using 98% CPU.  I left it on overnight - it never completes.

After #2, my only option is to release the database from the admin computer...

I've unloaded the A/V software and tried - still the same issues.

Windows XP, SP3, fully patched.
IE 8
AVG A/V