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Your AviSynth script uses the filter AVISource. This filter opens AVI files with the "Video for Windows" API. To decompress Xvid video, it requires a VfW codec installed for decompressing video with the FourCC 'xvid'; a DirectShow decoder filter will not help here.
You may a) enable Xvid decompression in your ffdshow VFW Configuration (yellow icon); b) install the Xvid codec; c) use FFmpegSource2 instead of AviSource in your script.
Because you are using MeGUI 64bit, you may have issues accessing VfW as it is a 16/32 bit API; support in 64 bit address mode may have been deprecated. Therefore, solutions a) and b) may not be available for you.
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