I had the virus i-worm/netsky.b and after running AVG antivirus several times I decided to pay Grisoft.com a visit and found virus removal utilities. I downloaded the removal tool for i-worm/netsky.b. which removed the problem with ease.
I actually had a problem with a different virus and AVG would not remove the virus with its built in virus scan; I, however, did find an alternative (for Netsky viruses as well) given by grisoft/AVG at the following URL: grisoft.com
I would suggest following the URL's instructions to the letter. If you do, you can then run AVG's Scanning Software and the Virus will have disappeared.
This removed the other virus for me and it is also supposed to work for the netsky viruses as well.
Good Luck!
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