Okay, so DivFix found an error, it should now be fixed. Extract the Audio file as I mentioned abouve and use the new fixed AVI as Video source in TMPGEnc.
The AVI may appear to play okay on the PC (should now once fixed) but many errors are just skipped during playback and you never actually see them, thats the problem. TMPGEnc has to encode 100% every frame, players can and do skip the odd frame including faulty frames.