AVG Free is an open source antivirus and anti-spyware software that guards the PC from threats that can harm the system. The user can update this software; however, the update process may fail and it may show an error message such as, connection with update server failed. There are three options to solve this issue with AVG Free. Firstly, one can make the changes in the settings of Dial-up. Secondly, one can choose the required connection settings in the AVG Free Watchdog that allows interaction between the service and the desktop. If none of these work, then the issue may be due to a .ctf file that has to be deleted following which, the update must be restarted.