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Once 2-3 years xvid avi files used to play normally with Windows VLC player but now, when PC's have a lot more power are lagging.
When mouse clicking on time line and jumping video forward with mouse, 2-3 years old xvid avi files play sloppy, with smeared and distorted colour areas for 20-30 seconds, while new mp4 video files play normally without any distortion, when jumping.
New Windows 7 64 bit and other PC is a little older Windows XP.
I just downloaded Xvid Codec 1.3.2 but no help.
VLC Lan 2.1.1
There are many different avis and not a single problematic codec version ...
Any ideas how to restore 2-3 years old avi playback?

V2.1.1 seems to have some bugs, not just your problem. Try going back one version to 2.1.0 Look here http://download.videolan.org/vlc/

Unfortunately I just updated to latest version to fix xvid performance.
But this doesn't seem to be reason.

I found an old 32 bit XP machine and run Gpot.
The question is why first file runs smoothly and second is lagging badly.

1. plays normally:

FILE_NAME demo_ok.avi
FILE_NAME_WITH_PATH E:\2_test\demo_ok.avi
FILE_SIZE 212,495,262
CONT_AUDIO_STREAM_COUNT 1
CONT_BASETYPE AVI(.AVI)
CONT_BYTES_MISSING 0
CONT_INTERLEAVE_ALIGN Split
CONT_INTERLEAVE_PRELOAD 504
CONT_INTERLEAVE_TIME 33
CONT_SUBTYPE OpenDML (AVI v2.0),
CONT_TOTAL_BITRATE 0
VIDEO_ASPECT_CONVERT_AVI1
VIDEO_ASPECT_CONVERT_AVI2
VIDEO_ASPECT_CONVERT_CVD1
VIDEO_ASPECT_CONVERT_CVD2
VIDEO_ASPECT_CONVERT_DVD1
VIDEO_ASPECT_CONVERT_DVD2
VIDEO_ASPECT_CONVERT_SVCD1
VIDEO_ASPECT_CONVERT_SVCD2
VIDEO_ASPECT_CONVERT_VCD1
VIDEO_ASPECT_CONVERT_VCD2
VIDEO_ASPECT_SOURCE_MATCH
VIDEO_ASPECT_TYPE_NTSC
VIDEO_ASPECT_TYPE_PAL
VIDEO_BITRATE 1900
VIDEO_CODEC_NAME XviD 1.1.2 Final
VIDEO_CODEC_STATUS Codec(s) are Installed
VIDEO_CODEC_TYPE XVID
VIDEO_DAR 1.800
VIDEO_DURATION 13:40.228
VIDEO_FIELDS_PER_SEC
VIDEO_FRAME_COUNT 24582
VIDEO_FRAMES_PER_SEC 29.970
VIDEO_H264
VIDEO_MPEG2
VIDEO_MPEG2_3X2
VIDEO_MPEG2_BFF
VIDEO_MPEG2_I_L
VIDEO_MPEG2_PPF
VIDEO_MPEG2_PROG
VIDEO_MPEG2_TFF
VIDEO_MPEG4 MPEG-4
VIDEO_MPEG4_BVOP B-VOP
VIDEO_MPEG4_GMC
VIDEO_MPEG4_NVOP
VIDEO_MPEG4_QPEL
VIDEO_PAR 1.000
VIDEO_PICS_PER_SEC 29.970
VIDEO_QF 0.344
VIDEO_SAR 1.800
VIDEO_SIZE_X 576
VIDEO_SIZE_Y 320
AUDIO_BITRATE 160
AUDIO_BITRATE_TYPE CBR
AUDIO_CHANNEL_COUNT 2
AUDIO_CODEC 0x0055 MPEG-1 Layer 3
AUDIO_CODEC_STATUS Codec(s) are Installed
AUDIO_MPEG_STREAM_ID
AUDIO_MPEG_SUBSTREAM_ID
AUDIO_SAMPLE_RATE 48000

2. File is lagging.

FILE_NAME demo_bad.avi
FILE_NAME_WITH_PATH E:\2_test\demo_bad.avi
FILE_SIZE 215,355,658
CONT_AUDIO_STREAM_COUNT 1
CONT_BASETYPE AVI(.AVI)
CONT_BYTES_MISSING
CONT_INTERLEAVE_ALIGN Aligned
CONT_INTERLEAVE_PRELOAD
CONT_INTERLEAVE_TIME
CONT_SUBTYPE AVI v1.0,
CONT_TOTAL_BITRATE 0
VIDEO_ASPECT_CONVERT_AVI1
VIDEO_ASPECT_CONVERT_AVI2
VIDEO_ASPECT_CONVERT_CVD1
VIDEO_ASPECT_CONVERT_CVD2
VIDEO_ASPECT_CONVERT_DVD1
VIDEO_ASPECT_CONVERT_DVD2
VIDEO_ASPECT_CONVERT_SVCD1
VIDEO_ASPECT_CONVERT_SVCD2
VIDEO_ASPECT_CONVERT_VCD1
VIDEO_ASPECT_CONVERT_VCD2
VIDEO_ASPECT_SOURCE_MATCH
VIDEO_ASPECT_TYPE_NTSC
VIDEO_ASPECT_TYPE_PAL
VIDEO_BITRATE 981
VIDEO_CODEC_NAME XviD ISO MPEG-4
VIDEO_CODEC_STATUS Codec(s) are Installed
VIDEO_CODEC_TYPE XVID
VIDEO_DAR 1.773
VIDEO_DURATION 6:39.203
VIDEO_FIELDS_PER_SEC
VIDEO_FRAME_COUNT 11964
VIDEO_FRAMES_PER_SEC 29.970
VIDEO_H264
VIDEO_MPEG2
VIDEO_MPEG2_3X2
VIDEO_MPEG2_BFF
VIDEO_MPEG2_I_L
VIDEO_MPEG2_PPF
VIDEO_MPEG2_PROG
VIDEO_MPEG2_TFF
VIDEO_MPEG4 MPEG-4
VIDEO_MPEG4_BVOP B-VOP
VIDEO_MPEG4_GMC
VIDEO_MPEG4_NVOP
VIDEO_MPEG4_QPEL
VIDEO_PAR 1.000
VIDEO_PICS_PER_SEC 29.970
VIDEO_QF 0.149
VIDEO_SAR 1.773
VIDEO_SIZE_X 624
VIDEO_SIZE_Y 352
AUDIO_BITRATE 105
AUDIO_BITRATE_TYPE VBR
AUDIO_CHANNEL_COUNT 2
AUDIO_CODEC 0x0055 MPEG-1 Layer 3
AUDIO_CODEC_STATUS Codec(s) are Installed
AUDIO_MPEG_STREAM_ID
AUDIO_MPEG_SUBSTREAM_ID
AUDIO_SAMPLE_RATE 48000