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Clean install, 1.05, then 1.05C is fine.
Try a reinstall, also rename the AVI folder to AVI_back.
Set color depth to 16 BIT.
 
Hmm, Try a fresh install.
Make sure you install 1.05 before you install 1.05C.
 
Are you sure you installed the correct 1.05 patch for your version?
 
I just think if it was a general problem then lots more people would be reporting it.
 
I think you most likely found the problem, as I suspect and incorrect install.