I think your post is in the wrong forum. This forum is for the 2009 model WDTV Live HD and 2010 model WDTV Live Plus.
The forum for the 2011 WDTV Live Streaming Media Player is here:
http://community.wdc.com/t5/WD-TV-Live-Streaming-Media/ct-p/wdtvlive_streaming
AVI is just a container. The CONTENTS of the container must also be supported.
Please post the full TEXT output of MEDIAINFO for such a file.
