The AMV Converter as part of the MP3 Player Utilities or Bytessence MPxConverter should convert to AMV files fine. You shouldn't need to pay for AMV Converter Studio as those two other applications should do the job.
If you want to convert from other formats, check to make sure you have installed all the correct codec packs and that you have Windows Media Player 10 and above as well. I've been able to convert from .AVI fine using the AMV Converter (not the same as the AMV Converter Studio you are using). You should need to pay for an AMV Converter that's for sure.
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