I dont have the Captivate yet but I did go to the store and put in a microsd card that contained several vids. 1 of those were xvid encoded .avi's. 2 were also H264 and AVC encoded .mkv's. and 1 was an .flv video. They all played fine. The largest of the .avi's had AC3 audio and xvid compression at 2Mbs bitrate.
Perhaps your xvid file has a higher quality bitrate that the phone can handle?
When I get the phone I will test the max bitrate capabilities of the video player.
I found the answer. I had to change the containter format from avi to mp4. The video and audio were just copied into the new containter and only takes a minute to do. For some reason it doesn't like the avi format.
Yup I played quite a few .avi also they were a mixture of xvid and divx encoded videos with ac3 audio. Better yet, it plays .mkv flawlessly. I love this phone.
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