Having done a far amount of reading I finally found that emule will give you a low id if it can't connect to the ports it needs.
Having looked at how to enable this through AVG proved to be a bit of a problem as it does not seem to allow you to open certain ports.
I then read that this could be done with the firewall that comes with Windows XP tried this but did not work.
I have found that the router I have has a built in firewall. This could be the cause for most people. I found an article that said that for belkin routers you need to
1. find your ip address eg 192.168.2.xx
2. have a look in the DHCP Client List your computer should be listed. 2 Once you have found that out write it down.
3. On your belkin router page click on DMZ.
4. You should see your private ip address 192.168.2 greyed out
5. click in the enable box you can now fill in the empty box.
6. click apply changes
7. Your done! 
Open up emule you should now have a high id.
Remember when you quit emule click in the enable box to stop your ports from remaining open apply the changes.
Hope this helps.
guido