QUOTE (shinyjiggly @ Oct 7 2012, 10:02 PM)
Most likely this problem is because your movie files are avi and not mpeg. I've had some experience with beta testers getting this error at the avi files in my game so I remade the short ones using pictures/battle animations and converted the more complex ones into mpeg.
Note that you should probably re-export/re-record the raw footage instead of just converting the avi of the final product to keep the quality up. This isn't totally required, but it's recommended.
Also, watch out for video converter programs that add unnecessary clutter at installation. I downloaded one that worked fairly well but installed all sorts of useless utilities and even screwed with the behavior of my internet browser's new tab button.
Really? All Movies I place in my game are avi format.. but My compression method is as basic as you can get. I also render them in 320x240..