I've got Nero 7, and tried to burn an AVI file to DVD. It came out all grainy. So I tried opening it up in Nero Showtime, looked the same. Tried opening it up in Windows Player. It looked the same way, all grainy, no sound. I figure it's a codec problem, but I got it to play just fine before, so I download the K-Lite codec pack. It plays fine in Windows Player now, but there's no difference with Nero Showtime. And I figure if it doesn't play fine in Showtime, I'd be wasting my time and a DVD trying to burn it.
So why Showtime won't play the file even though I installed the CODECs? Obviously the CODECs work with Windows Media Player.
Well, for the benefit of everyone else, I figured it out. You have to play with the settings for the K-Lite codec configuration tool. I just kept clicking on things and testing the Nero player until it worked. I would get it to just give me audio, or just video, and finally I got it all.
Nero showtime will use it's own decoders, over-riding any direct show codecs you might have installed. When you installed the k-lite codec pack, there are a number of mpeg4 decoders that you could have enabled... DivX, XviD, FFDShow etc.
It is hard to say what exactly caused the problem but I have found that if you install the full version of k-lite codec pack and let FFDShow decode mp4/avi with all the default settings, then all mp4/ AVI files should play without a problem. The DivX decoder should still decode it's own files (those with FourCC "DX50" etc.).