The above file is an Xvid type AVI file.I downloaded it and tried on my device with GB 2.3.4. I played it using the built-in player , ES Player and MX Player app & Mobo Player, all had the same result. It was NOT playing smoothly. There was a slight stutter. I played the same file on my Sybas chipset media player, it played smoothly. I then took a similar file (AVI file but Xvid variant) from my media player and then played on my ATV4000 , i had same result. The picture had a stutter. The motion had a jerkyness to it.
I now conclude that my ATV4000 cannot play Xvid files smoothly . It maybe a case of the Xvid codec missing or needs a newer version. This jerkyness may not be noticed by all.
** I uploaded more players such as CineXplayer, VPlayer and RockPlayer Lite to test Xvid playback. So far RockPlayer Lite plays Xvid the best. I have also read on Google that Android does not support Xvid natively.Being an ex-TV video editor it does make me want to find out why a video file does not work...