I’d recommend googling for ‘MPEG Streamclip’ and downloading it for this and future projects. It’s free and it’s great for making all sorts of footage editable in FCP, especially non-copyrighted DVDs.
Just drag and drop your .avi into MPEG Streamclip and export to Quicktime – choosing the format you’d like to edit in.
Kai
FCP Editor / Producer with Intuitive Films
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MacBook Pro 2.4GHz | 4GB RAM | FCP 5.1.4 | Mac OS X 10.5.2