Hi Jim ... I'll be doing the same in a few months with my system that has Avira on it.... The notice you saw about upgrading to the pay version is just an advertisement. Of course, they would be happy for you to get a paid version, but totally not necessary as the free version continues on with full support as always... Here's the info from the Avira forum and lets you know you can just get a new license for the free version and reregister your current version or you could download a new copy of the free program with license for registration, then uninstall the old version and install the new one you downloaded - doing this install while off line of course...

...
http://www.free-av.com/en/pages/22/faq.htmlEven if the old installed version expires it will still protect you as always, just wouldn't be using the newest data files for the newest trouble makers out there, so that doesn't sound like something we should do....

.... Reregister or reinstall is entirely up to you. I'm going to uninstall and then install the new download when the time arrives, just to have a clean and uncluttered program (just in case there is some useless old files that might have remained after an update of the program during the year).
It's just a business thing to offer the paid version, just in case you might consider getting it, but when using the program for personal home use, the free version is always free and you NEVER HAVE TO upgrade to a paid version. Sometimes, depending on the time of day folks try to update the free version, they might have to do the manual download and install as the servers just get overloaded from users all over the world getting their updates at the same time. I have Avira on a Netbook which I tend to not use until later in the evening here on the West coast of the USA and I very rarely have not had it auto update when I first start up. The paid versions do use different servers and thus never have any conflict with updating at any time day or night or any world time zone.......
Hope that answered things for you, at least from my perspective..

.. BT