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Best answer (Chosen by asker)
Your problem here may be that you have a corrupt frame or maybe a few corrupt frames in your AVI file. Some players will go straight through the corrupt frames but it's always best to get rid of them, especially if you are planning on encoding this AVI to an MPEG file at any stage.
The program I suggest to use is VirtualDUBMOD. Open it and click Video --> Scan Video Stream For Errors --> Scan...
You can then return and click Show Bad Frame.
To manually remove bad frames, use the slider to get to the area and hit Play. If it freezes or you see really blocky frames, pause it. Use the direction keys on your keyboard to go back and forward through frames. When you get to the frame right before your bad frames, hit the Start Selection button (this is the second last button), then hit the End Selection button after you've used the direction keys to get passed the corrupt frames. Hit the Delete key now to delete the selection.
Click Video --> Direct Stream Copy and then click File - Save As...
Hopefully the resulting file will play back correctly.
If you have any other problems please visit our discussion forums.