Solution
There is a simple solution. Compress the file with any of the other compression methods available (DV Video, Cinepak Codec, Intel IYUV codec, Microsoft RLE, Microsoft Video) and you will be able to open the file without the black screen. Another simple solution would just be to ensure that your AVI files have an even height value of pixels.
If you would like to see an example of this in action, please use the code below to create an AVI file, and read that written file with the Read AVI File.vi located in NI Example Finder under Toolkits and Modules»Vision»Files. The written AVI file should appear as a blank gray video file if working, and will be black if it cannot be read.
The working compressed file will look as follows:
The non-working compressed AVI file will appear like this: