yes avi should play on that.. but i think that kind of device(frame) is like some of the mp4s that includes avi in the features but will have problems playing avi type of files.... ... i dunno if this is useful coz i dont think i have the answers to correct it... maybe u can just convert the files in other filetype that your frame can read....
i read this from wikipedia
The AVI container has no native support for modern MPEG-4 features like B-Frames. Hacks are sometimes used to enable modern MPEG-4 features and subtitles, however, this is the source of playback incompatibilities.
AVI files do not contain pixel aspect ratio information. Microsoft confirms that "many players, including Windows Media Player, render all AVI files with square pixels. Therefore, the frame appears stretched or squeezed horizontally when the file is played back."
There are other video container formats that allow irregular shaped pixels.
More modern container formats (such as QuickTime, Matroska, Ogg and MP4) offer more flexibility, however, projects based on the FFmpeg project, including ffdshow, MPlayer, xine, and VLC media player, have solved most problems with viewing AVI format video files.
pls do update me if you've resolve the problem