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If you've got XP with at least SP1 (preferably SP2) you've got Windows Movie Maker. Just click on "Import Video", select your avi file. When it loads, drag it to the timeline. Don't be surprised if it breaks the avi into several segments, just add them to the timeline in sequence.
If you don't want to do any editing, just click on "Save to my computer". You will then be given lots of options for the saved format including several choices for the quality of wmv (video size, bit rate, etc.)
It's free, you've probably already got it, and the ability to edit and/or add title screens is a bonus. I use it all the time.
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