The .avi file format is actually a container format, within which a wide range of codecs can be used. It would seem, from your error message, that your computer does not have, or Music Maker cannot use, a codec necessary for the reading of your file.
You need to download and install the free MediaInfo utility, point it at your .avi file and then post the results of the Text view here. With that information, we may be able to suggest a solution.
It would also be helpful to know a lot more about your actual computer; this post will give you some idea of what information would be really helpful.
Two things are "unusual" about your video file, either or both of which may be causing MM to not be able to display the video: the frame rate (35fps is one I have never seen before. I think MM will expect 24, 25 or 30); aspect ratio, 1366 x 666 is, again, not standard.
I am also confused by the codec being stated as "Basic Windows Bitmap format". Is your "video" essentially a static image?
One other question/comment. I see the audio on this video is 44.1kHz sample rate. Are you running MM at the same sample rate?