I have a similar problem. my limewire downloaded avi file will not play on Windows Media, VLC, Media Player Classic or Real Player. I also have K-Lite Pro and K-Lite codec pack,where the file was also downloaded from.
Messages from the players vary from "wrong file format" to "content is blocked" to "cannot render file". The avi file will not convert to DVD using AVS either. I'm spending too much time geting nowhere!