I think we alerted quite clearly in all manuals we can think off, that antivirus should be turned off, expecially in FS9. AVG, here and then, is known to report false positives about bglman.dll. Try to exclude the fs9\modules folder from scanning. Also, check your virus definitions are updated. If they already are, it might be that the error might go away, it already happened that AVG mistakenly reported a false alarm on bglman.dll, only to be corrected a few days after, with an update of their virus definitions.Also, I see you are getting also an fssound.dll error alert. This means it's not just bglman.dll not running on your system.
2) I disabled AVG, re-installed and I'm still getting the same problem...
Have you tried with version 1.1 ?