bigm43,
It can depend on what version codec was used to encode the video originally. For example I downloaded a pack of 8 seasons of south park all in .rmb format, although I could play them all the first 3 seasons would not convert where as the later seasons I had no problem with. I had to install an older version codec to convert the earlier episodes.
The process of reading a file to play and decoding a file to re-encode into another format is a little different as well.
AVi files can also be divx or xvid encoded.
I also have the K-Lite Mega Codec pack installed but recently I had to upgrade the Divx codecs to convert some MP4 files to AVI.
I can only suggest you try some other codec options, if you have the standard K-Lite pack installed try the Mega Codec pack.
I have now got into the habit of preprocessing everything through VirtualDub to resize, crop etc and then converting the VirtualDub AVI to AMV.
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