Mama spam is one of the most infuriating parts of the internet today. The other is viruses, spyware and trojans, and you are doing right by using AVG to help combat viruses. Just make sure that you keep AVG's virus definition list uptodate by checking for updates every 2 or 3 days or so.
As Cory says, anti-virus applications do not stop spam, they will only scan email messages to check for viruses so you must do something else to combat spam emails. But before I make my own suggestions, a few more words about viruses and spyware.
Eventually you are going to get infected with a virus or spyware. It happens to us all even with all the preventative measures we all use. But you can make it difficult for the virus/spyware writers to see and get into your computer by using dfferent applications. These are what I use. They are all free;
A Firewall
If you decide to use nothing else, you need a firewall. This software sits between your Operating System, (OS), and the internet connection and checks every bit of data that tries to come in, and that tries to go out. Windows has its own firewall, but it is not very good. You really need a separate firewall and I use ZoneAlarm from;
http://www.zonelabs.com
This is a free firewall and will greatly improve the security of your computer.
AntiVirus
You already use AVG and that's very good. Just be sure to keep it uptodate, and perform regular scans with it, eg once a week.
Anti-Spyware
You need two or more anti-spyware applications. One isn't enough nowadays because spyware takes many forms. I use;
Ewido Security Suite from http://www.ewido.com or from download.com.
Although after the free trial period you lose some bells and whistles, it still works very well. If you decide to use it, make sure you keep the definitions uptodate and scan regularly. You don't need to set this to run everytime you start the computer. Just keep it as backup defence.
SpywareBlaster from http://www.javacoolsoftware.com/spywareblaster.html
Keep it uptodate and it will innoculate against spyware in the background without the need for scanning.
Microsoft Antispyware from http://www.microsoft.com
Allow this to update itself automatically and run in the background automatically and it will keep a check on anything nasty that tries to make changes.
With all those you will greatly help prevent any infections or hacking attempts.
Now, back to spam. As Cory said, there are many spam blockers available, but I use my own email software to help me get rid of spam.
I don't use Outlook, or Outlook Express, they are too vulnerable. I use Netscapes email software, but a better one is the new Firefox browser companion called Thunderbird, from;
http://www.mozilla.com
They both have a feature called ''Junk'' email filters. By starting the Junk feature Thunderbird will, over time, learn which emails you don't want and send them either to a Junk folder, or direct to the Trash folder. It does this simply by you clicking the ''Junk'' button for each email you don't want to read. You don't even have to highlight the email which means it is never opened and so viruses do not get the chance to get in.
The process is slow to begin with, as it has to learn what you don't want, but soon your spam email will mostly be junked and you never have to see them.
Just make sure that the email software is set to delete the Trash folder whenever you close the program down. And, do not open any emails you do not know who they are from. Even well known and trusted firms send spam emails and if you don't want them junk them immediately.
One more thing. Even though AVG does its job by checking emails as they come in, never trust any email attachments, even if they are from relatives and friends or other trusted sources. Instead, right click the attachment and select to save to a convenient place. Your desktop is suitable as a ''temporary'' storage are.
Then, find the attachment on your desktop, right click it and select ''Scan with AVG''. If it comes up clean then it is safe to open the attachment. Afterwards you can decide what to do with the attachment; either keep it and cut and paste it into a folder somewhere, or delete it immediately.
Sorry for the long post, but I hope there's something there that will help you.
Mark