MDNSResponder is used by Apple, it is the process of Bonjour. Bonjour allows apple itunes to share files without your authorization. Follow these instructions to remove it.
http://www.neowin.net/forum/index.php?showtopic=632296

If you do not need to use the Daemon Tools program from startup, or any of the following for that matter, follow these instructions for each process:
WindowsKey+R open Run Dialogue, "msconfig" into the box. Select the Startup Tab and uncheck the following.
SeaPort.exe, MsMpeng.exe, MDNSResponder.exe, Daemon.exe, Msmsgs.exe, realsched.exe, jusched.exe, PnkBstra.exe(temporarily for troubleshooting),.
This will speed up your computer a bit, and stop updaters and such from connecting to their host when your computer starts. Try and run tb again, if no success then I believe it's AVG.

Ctfmon.exe is for Advanced Text services, if you do not use a microphone for texting then open up your control panel and double-click Regional and Language Options. Under the Languages Tab, click Details button. Click advanced, check Turn off advanced text services.

The Problem would then be with a firewall, AVG or Windows for that matter. But you say you added exceptions for TB in the Firewall, which firewall did you add the exception in? I would make sure that Toribash is a Trusted Application in AVG for both anti-virus and firewall.