Nero Recode, path of Nero Premium 7 can convert AVI files into .mp4 files. This is interesting because it means I can play them on my k750i phone. Just plonk them in the D:\MSSEMC\Media files\video\camera directory on the phone via USB. I recoded them to 100k/s so an eight second video used 800k. At this rate an hour long program would need 360M and hence a 512M or 1G memory stick. It plays in a window within the screen that is about 1 inch diagonal so it's not good for immersive home theatre. Also have to wonder what it does for battery life.
The player has no fast forward button so it's no use for watching Lost.
Twitterings

Turn the joy right and hold a while. And watch Lost :).