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The problem is with editors, not players. For playback, avi just works, once the necessary changes are made to the splitters to seek properly.
However, avi editors are mostly dumb as rocks compared to directshow splitters like haali's and even microsoft's; virtualdub only just recently started supporting vbr, avidemux has for a long time, but premier, AE, aviedit, and all the other avi cutters and editors that I've used just freak out on vbr. Some crash, some output garbage, some timeshift like vdubmod, and so on. This is avi's legacy, and combining that wide support base with avi's loose specs gives a lot of interoperability problems.
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