Well, the AVI codecs are standard with Microsloth's Media Player and that is installed (and upgraded) so that's not really the issue. Besides, I opened the MOVIES folder and watched several of them by running them. Its got something to do with the way they are loaded, or at least the opening sequence, because I noticed that there is no sound with the intro AVI. Only with the cut scenes. I also noticed that the they are using the ogg vorbis files for a lot of the sound. I'm no expert here, but its kinda fishy to me.
The games works, though, and I see/hear everything.
sww