I use Microsoft Forefront and Defender on Vista with Windows Firewall on the two computers that are used regularly.
On Windows 7, which I'm testing on my TabletPC and in a VMware Workstation VM, I'm just running Defender without AV since I am not using using the machine for much Internet access and only with a few known applications.
IMO, there are four things that most users need to know:
1. Do not install software from an untrusted source. This includes:
- any pop-ups claiming that you are infected and need to install the cleaning software
- pirated software
- codec packs
2. Turn off
AutoPlay for all drives (CD/DVD/BD/USB).
3. Never open attachments from an untrusted source.
4. Keep your computer up-to-date with Microsoft Update and updates for any anti-malware you are using with the automatic update settings enabled.
For home users, as long as you follow the above guidelines, I recommend AVG Free or Avast, with Defender along with the Windows Firewall.
For most home users, Gmail is a good email solution. It has the best spam filters I've seen, has malware protection and provides lots of storage.