I would not recommend you to uninstall AVG. You can simply switch the realtime monitoring off during capturing/testing.
If you have many reallocation sectors (and that number is increasing) on your disk it means that replacing the HDD is a good idea.
However, ignore the SMART info for a while. Just run HD Tune Benchmark by pressing ‘Start’ button on Benchmark tab (I’m talking about last free version HD Tune 2.55). Post your HDD model number (you can copy it from dropdown list of drives) and link to benchmark’s result (press ‘Save screenshot’ button after complete the benchmark and upload it somewhere).