|You didn't list your system specs. Could it be that you have a weak CPU, weak graphics, too little RAM? Could it be that the AVI file is "broken" or maybe not an AVI file at all? (very common in the torrents) Did you try Windows Media Player rather than VLC? And just out of curiousity, what is the size of the AVI?|
Make sure you have the latest XP codec pack installed, then give WMP a shot. If nothing else, it may display an error message.