I then created a local Admin account and used those credentials in UAC on the standard account and everything works. I was trying to use the standard local account with the Microsoft password in UAC to install software etc. I am used to local accounts only, Admin and standard. I found that I could not do that with the password I had set up with the original 'Microsoft ' account that you log in to with an Outlook address. I always set up standard account to use on a daily basis and then just enter Admin credentials in UAC when needed. I have been running into problems trying to do things with that account. The other thing I did that was different is I used a newly created local Admin account on the Windows 8 computer instead of the 'Microsoft' account that was created when I first set up the new computer. And it worked!!!! I am new to AVG, I have been using Kaspersky for years on my other computers. I disabled the AVG firewall deleted all of the files in the peer networking folder on both devices, restarted both computers, created a new homegroup on the windows 7 machine and tried to join on the windows 8 device. In doing some research this morning I found some info about AVG and homegroups and found out that AVG also has its own firewall that needs to be disabled separately from the AV itself.

I have AVG Internet Security on the windows 8 computer and one of the first things I did was to disable the AV on both computers.

Homegroup not detected windows 10