1 Answer

Windows media player 10 can read AVI files but you must read here first: http://www.microsoft.com/windows/windowsmedia/player/10/readme.aspx#150439b

(quick view of a much larger explanation)

AVI video files may not synchronize successfully
The Player can automatically synchronize copies of your AVI video files to your portable device, provided that a decoder on your computer has converted the file copy to a different format. For conversion to succeed, non-Microsoft decoder software that supports conversion must be installed on your computer. If the decoder software on your computer does not support conversion, you may receive one of the following error messages when you try to synchronize: "The remote procedure call failed", "Memory could not be allocated because no size has been set", or "The server threw an exception".

If you are trying to synchronize AVI video files, and encounter an error, contact the manufacturer of your AVI decoder software for information about an upgrade for your AVI decoder that supports conversion in Windows Media Player 10.

If you aren't sure what decoder is installed on your computer, you may be able to find out by doing the following:
In Windows Media Player, start playing the AVI video file that you want to synchronize.
As the file plays, on the File menu, click Properties.
The Properties dialog box may display the decoder.