This is a known problem with XP.
1. Open up regedit
2. Goto HKEY_CLASSES_ROOT\SystemFileAssociations\.avi\shellex\PropertyHandler
3. Delete the "Default" value which should be "{87D62D94-71B3-4b9a-9489-5FE6850DC73E}\InProcServer32"
You have to find this manually -- can't search for it.
After you make this change, XP will no longer display the duration, bitrate, dimensions of the avi file. However, it will not give you the error with the AVI files any more.