Encoding avi is a pain in the arse at the best of times, Nero I know is'nt that good of an encoder( just what I've heard) but I'm not sure wether this refers to the picture quality or not as I only use nero encoding for stuff like cartoons. If I was trying to get a decent copy of a film I would probably use TEMPGEnc which does have a problem with audiosync, try
www.dvdhelp.com for tips on curing it, which will involve extracting the audio from the avi as a wav file using audio dub as TEMPGEnc does'nt handle mp3 very well, theres also settings there to change that can help your encoding with any software. This may be a stab in the dark m8 but I once pissed about with settings for ages before realising the avi was out of sync so just check that aswell.
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