Stuttering video and audio out of sync

I just rec’d my WDTVLP unit on Friday, it is updated to the latest firmware for hulu+ access.  I’ve been trying to play some xvid avi files and have run across the same problem with each one I attempt to play.  The video seems to hang every few seconds and the audio is out of sync.   These files play fine on the computer, on the old xbox and on my cell phone. The files all live on a 1T usb drive connected directly to the unit.  (never could get network access to work but saving that issue for another day).  I’ve spent the better part of the morning browsing the forum and google to try to find an answer.  I did see where GMC may cause an issue but based on the info below it doesn’t appear this video has that.  Anything jump out at anyone?  If the only answer is to convert all 500+ avi’s I’ll have to send this back and dig the xbox back out.

Complete name                    : C:\Users\kirkk2\Desktop\ne_s1e01_pilot.avi
Format                           : AVI
Format/Info                      : Audio Video Interleave
File size                        : 283 MiB
Duration                         : 47mn 57s
Overall bit rate                 : 826 Kbps
Writing application              : MEncoder 2:1.0~rc2-0ubuntu13
Writing library                  : MPlayer

ID                               : 0
Format                           : MPEG-4 Visual
Format profile                   : Advanced Simple@L5
Format settings, BVOP            : 2
Format settings, QPel            : No
Format settings, GMC             : No warppoints
Format settings, Matrix          : Default (H.263)
Codec ID                         : XVID
Codec ID/Hint                    : XviD
Duration                         : 47mn 57s
Bit rate                         : 716 Kbps
Width                            : 720 pixels
Height                           : 480 pixels
Display aspect ratio             : 3:2
Frame rate                       : 29.970 fps
Standard                         : NTSC
Color space                      : YUV
Chroma subsampling               : 4:2:0
Bit depth                        : 8 bits
Scan type                        : Progressive
Compression mode                 : Lossy
Bits/(Pixel*Frame)               : 0.069
Stream size                      : 246 MiB (87%)
Writing library                  : XviD 1.1.2 (UTC 2006-11-01)

ID                               : 1
Format                           : MPEG Audio
Format version                   : Version 1
Format profile                   : Layer 3
Mode                             : Joint stereo
Mode extension                   : MS Stereo
Codec ID                         : 55
Codec ID/Hint                    : MP3
Duration                         : 47mn 57s
Bit rate mode                    : Constant
Bit rate                         : 96.0 Kbps
Channel(s)                       : 2 channels
Sampling rate                    : 48.0 KHz
Compression mode                 : Lossy
Delay relative to video          : 33ms
Stream size                      : 32.9 MiB (12%)
Alignment                        : Aligned on interleaves
Interleave, duration             : 24 ms (0.72 video frame)
Interleave, preload duration     : 504 ms
Writing library                  : LAME3.97

Dude, what if you just remux the file once just for testing?