I have experienced exactly the same problem when converting my Sony video camera tapes to AVI files. They view perfectly well on ny Windows 7 PC, but when I copy (drag and drop) them across to my 1GB external Iomega drive (which is connected to my WD Live), I get exactly yhe same message. When I try to view them on my TV I get the error message “Unable to play the selected file. See manual for file formats supported” and yet I have other avi files stored on the extrnal drive which work perfectly. The file on the external drive plays fine from my PC.