Converting AVI files to a watchable format is always a hit and miss procedure if you want the best quality. Especially when you want to upload the converted movie to YouTube or a similar site. I spent a long time investigating and trying various formats.
My advice is to use the Xvid codec.
This also assumes you have an uncompressed raw AVI as a source movie (which is what Visions Of Chaos outputs when you render a script to a movie file), but any other format that VirtualDub supports can also be converted.
1. The Xvid codec. Follow the codec links from here. Download and run the installer. This will ensure your system supports playback and encoding of Xvid format avi files.
2. VirtualDub. Grab it from here. Unzip it into any folder of your choice.
1. Load VirtualDub.
2. Select File->Open Video File and select the AVI you want to convert
3. Once loaded, select Video->Compression
4. Highlight the “XVID MPEG-4 Codec” on the left hand list and then click the Configure button.
5. Set “Profile @ level” to (unrestircted)
6. Set “Encoding type” to single pass
7. Move the quality slider to the far left “1 Maximum Quality”
8. Click OK to close the XVid Configuration dialog
9. Click OK to close the Select video compression dialog
10. Select File->Save as AVI and type a path and name for the converted Xvid AVI file
Once the conversion is complete you will have the Xvid format AVI that will be much smaller and have great quality. Double-click the Xvid AVI to play under your default Windows media player app (I recommend Media PLayer Classic Home Cinema as it is a great lightweight media player that supports all the movies I have thrown at it).
The converted AVI can now be uploaded to YouTube and once converted at their end will result in a nice high-quality movie.
If you are reading this and have a better compression codec/app let me know.