It's as designed, not a problem with vista.. AVG 8 should be able to run in Safe Mode.
Hope this helps.
I'm looking at a friend's Gateway laptop with Vista on it and it has trojan viruses which Trend Micro Antivirus caught but was unable to quarantine. I tried rebooting into safemode but was told antivirus is unable to run. Is there a setting in Vista which prevents antivirus software from running in safemode? I'm running AVG 8.0 free edition now in normal mode, we'll see what happens.
Any ideas/info much appreciated.