This FAQ diagnosed the problem - I had to re-mux the AVI. Unfortunately it only had instructions for Windows.
To fix this in Ubuntu Linux I ran the following two commands:
Code:
sudo aptitude install mencoderCode:
mencoder -ovc copy -oac copy -of avi -o "remuxed.avi" "original.avi"The file processed for a few minutes and then it ran smoothly on XBMC.
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