Hey yeah Virtual Dub can do that. Open up virtual dub first of all and then drag and drop your video. Then go to Video--> Filters .. and click on add and then scroll down and click on ROTATE (not ROTATE2) and that will rotate your video, I would recommend resizing it in Virtual Dub too. Go to the Filters again and this time add "RESIZE" and change it to 128*128 and then convert it to amv. That works perfectly for me!
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