Unless there's a way to upload AVI in iTunes ?
Remember that AVI is a container type and not a compression format. Any QT supported AVI can be added to, managed by, and played in iTunes if you simply copy the data from the AVI file container to an MOV file container. This is not a transcode of the data but simply a re-wraping. Applications like QT 7 Pro or MPEG Streamclip can do this using the "Save As..." option. However, to be compatible with the TV2 device, the content data must still meet the stated compression limitations.
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