MPEG (1)s are designed to stream. All the mpeg video codecs are. AVIs are generally not. Although that is not always the case - AVI is just a generic container. Mediaplayer (and IE) doesn't know what it's getting when it sees an AVI, so it usually assumes that it CAN'T be streamed.
If you change the file extension to .wmv or .asf or even .mpg, mediaplayer will probably stream DivX or WMV encoded AVIs..
Standard "uncompressed" AVIs don't stream, they're just not designed for it.
Cheers,
Backov
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