I took the liberty to find a solution to your problem as I was trying to embedd an avi into Powerpoint 2007. Came to find out that AVI files don´t work on Powerpoint 2007 so here´s what I did: I converted the AVI file into an MPEG and reloaded it, after that it worked out just fine.
Download a FREE AVI to MPEG software application. I use Free FLV to AVI to MPEG converter version 1.6.
From my experience the video should be in a mpeg2, wmv or avi format.
The other thing is that you have to make sure you have the proper codec on the other computer to play the video.
For example if you have an AVI video with a H.264 codec and you are able to play it on your computer. When you transfer it to the other comuter you have to make sure it has the H.264 codec.