You have h.sie's patcher?
That would be your issue with AVG.
A false security threat by avg which stops your exe from running.
h.sie's patcher injects sh3 exe with code, hence avg spitting the dummy.
Open AVG Panel
Options -> Advanced Settings
Go to 'Exceptions Tab'
Click 'Add Exception'
Select File -> Browse for sh3.exe
Tick Any Location & Any Content
Click Ok
Apply
after this, apply the h.sie patcher.
Credits for fix to Aarnoman.
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