Interesting Video Playback Problem

So I installed megapack 12.0.5 but having a problem playing a small .avi file. It is only a few hundred kilobytes and can be downloaded here: http://www.pastefile.com/t0O2Bw
This file can be played in VLC just fine, but when played in MPC it gives some kind of error, after clicking okay, it plays with only sound and no video.
MediaInfo says it uses the RLE codec, whatever that is.
It puzzles me that K-lite cannot play it but VLC can. Does VLC come with its own codec?
Windows Media Player refused to play it too when I had only K-lite installed, then I got VLC installed and WMP plays it too now, but MPC is still doing the same thing.

VLC has its own codecs. It also does not have any effect on WMP.

You can fix it in MPC:
Options > Internal Filters > Source Filters > uncheck "AVI"

For WMP:
Codec Tweak Tool > Preferred Splitters > AVI > Microsoft

I will investigate why it fails with LAV Splitters.

I tried the fix for MPC, it no longer gives the error, but still plays with no video and only sound. The video plays fine in WMP and VLC.

Open the file with the GraphStudioNext tool.

It should create a graph with these filters:
- File Source (Async)
- AVI Splitter
- AVI Decompressor
- Color space converter
- Video renderer
- ACM wrapper
- Default DirectSound device

I don't know that tool. You can download one of the files I was talking about at the link in the original post, it's only a few hundred kilobytes. What can you tell from the file?

Your sample file plays fine here in MPC-HC. The only change to the settings that I made was disabling the internal AVI Splitter as mentioned above.

GraphStudioNext is included with the codec pack (Full/Mega versions). You can find a shortcut in the Start menu. It is tool that can visually show which codecs are being used to play a file.

Windows contains a decoder for Microsoft RLE by default. You can verify if it is enabled this way:
Codec Tweak Tool > ACM/VFW

LAV Video decoder also has the ability to decode this format. You can enable it in its options.

Yes, Microsoft RLE is enabled.