Originally Posted by doogal4

A further development and an easier/ quicker fix:-
Updated to Nero 7 v7.7.5.1. Lipsync issues when playing .avi files in Nero Showtime and when using Nero to make DVDs from .avis. Problem only when .avis encoded with xvid, not with divx. All .avis playing perfectly in Windows Media Player and PowerDVD.
Solution:-
Disable Nero's own codecs which forces the prog to use the system codecs:
In C:\Program Files\Common Files\Ahead\DSFilter, rename NeAudio2.ax to OLDNeAudio2.ax and rename NeVideo.ax to OLDNeVideo.ax.
If you ever need to reverse the changes for any reason just rename the two files to what they were.