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I have the very same problem. No one (even on the tech support side) seem to have any idea of how to fix it or why it might be happening. I've had folks tell me that I'm making my avi's incorrectly, but I'm pretty certain that that's not it. My solution was to convert my avi files to wmv files for the time being and wait for MVP or PocketDivX to come out with new versions.
Best,
Erik
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