Mystic2- it's been awhile since I've used the export to AVI feature in AHF. I now use Fraps instead for capture of AH films.
From what I can remember of the AHF instead of compressing the AVI choose the "save as uncompressed AVI" option. That will give you max image quality to start with before you do any other rendering and compression in WMM.
Uncompressed AVI definitely works for WMM. Here's a list of the file formats WMM pulls in (imports).
Video files: .asf, .avi, .wmv
Movie files: MPEG1, .mpeg, .mpg, .m1v, .mp2
The .avi is only uncompressed I think. If you've done some compression and saved as .avi it won't work.
Tango, XO
412th FS Braunco Mustangs