problem with game

well it could be multiple issues that cause that. I could narrow it down more if you told me what fixes you've tried so far, what your OS is, and maybe even a screenshot.

Just offhand I'll throw some common issues/fixes out there, but like I said, more information would be a great help.

1. Even though you've re-installed it twice, you could have a corrupt file. There are many things that could cause this. HD errors, bad blocks, antivirus software auto-cleaning the files in the background, other software compatibility issues (such as toolbars, video decoders, and so on), the list is quite large.
Solution: Verify the client files using the option in the launcher. Sometimes it takes a couple of tries. It is recommended to disable your antivirus software's real-time scan temporarily while you do this in case it is what "cleaned" a file and cause the issue in the first place.

2. The client is attempting to use a system process that is faulty or disabled.
Solution: Make sure that Windows is up-to-date with patches and service packs. You may want to run the System File Checker software from the Windows install disk to replace any corrupt system files and then update the OS. (How you do this depends on your version of Windows so I won't go into further detail.)

3. Some background process or software is preventing the client launcher from executing properly.
Solution: Check your running background programs for anything that might be interfering. You should also check the details in the Windows Error Reporting Tool to see what caused it to crash.

4. Any number of possible errors with corrupt dll files, outdated DirectX versions, bad video drivers and/or utilities, outdated audio drivers, and about a thousand other things that are too long to bother listing depending on what Operating System version you have.

Hate to say it, but the majority of that is your computer. If you would care to provide more information, I will be glad to look into it further.

I did not intend to imply you were a noob or computer illiterate by any means, I just had very little information to work with.

I find that setting the executable files for PWI to run with administrator rights helps a lot with Vista/7/8 64-bit, but I don't see why that would cause the program to error out like that.

What is the output in the Error reporting tool when it fails?

Assuming that it was working prior to the update, and failed to work after the update, would narrow down the possibilities. But that points more to security software flagging part of the program and blocking it from executing, or blocking a script the program is initializing.

Under Windows 7 and Vista, you need to set the three .exe files to run with administrator rights under the program compatibility settings.

These files are....
C:\Perfect World Entertainment\Perfect World International\patcher\patcher.exe
C:\Perfect World Entertainment\Perfect World International\Launcher\Launcher.exe
C:\Perfect World Entertainment\Perfect World International\element\elementclient.exe

Right-click on these, select Properties, click the "Compatibility tab, and check the box at the bottom where it says "Run this program as administrator".
(Personally, do this with any high-quality game and you will see a noticeable improvement in performance on most 64-bit systems.)

Do not set them to run under any other version of windows, or set any other compatibility settings. (Unless you have an older system, then the "Disable visual themes" option might improve your FPS a bit.)

AVG is also well-known for it's false-positives. If you haven't already, I would highly recommend adding the client folder to the exception list for active and scheduled scans. After you have done this, disable the active scan and run a verify on the client.
Every time you update, disable the active scan temporarily while you are doing the update process.