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Okay let's try some standard things.
1) Rename the AVI folder to AVI_back
2) Set the color depth to 16BIT
3) Turn off everything in the background like E-mail/ICQ/Messenger, Virus protection and everything in the system tray beside the clock.
4) Update your Windows, update your Video card drivers and audio card drivers. Then repeat steps 1-3.
 
The link is to his own excellent FAQ on the matter, it is in the Victoria forum but applies equally here.
 
Please run a DirectX Diagnostic:
Start menu –Run - then type Dxdiag, then select each tab across the top of the window, and run the tests on each tab. Then select “Save All Information” button in the lower right of the window. This will bring up a dialog box to allow you to select a name for the file where the information will be saved. You can save it right on the desktop as this will make it easy to find. Then copy the contents of that file from the start to the heading that says “DirectX components” then paste what you have copied into a post in this thread.
 
Nothing specific pops out that has not already been talked about.
But there is not a newer driver than the year 2000 for your video card?
 
40MB

Come now Bill Gates has assured us in the past that no one could possibly need more than 640K. :)

J/K aside thanks for the tip.
 
keep us updated.