while it's all in the title, it has been long now since there is a 'problem' with a streamed .avi : seek, timeline, timecode are not working okay
the weird point here is that actually it could be just too normal ,not VLC's fault , since unless I am wrong the .avi container is not packetised to provide for this
still it actually works 100% okay with Mplayer , which is even surprisingly fast at seek and re-play ! with almost
no lag time to re-deliver clean video as if it would find almost instantly some clean key frame anywhere you seek !
I would not think it is a low level problem for VLC because it is a problem to stream a basic DivX (mpeg4/mp3 in .avi ) on any kind of network