Attn Vidders

drbillbongo has been trying to teach me how to make music vids but it's all going a bit wrong. Everything is fine regards making a clip but when it comes to turning it into a .avi file that's where I encounter the problems

I get to this screen and drbillongo say that when she clicks 'first pass' she gets a pop up window, but I don't. If I go ahead and try and encode it anyway I get this error message

Any thoughts or am I doomed to never be able to make vids?