Hello Nologic,
Some notes.
>>1. This AVI file is broken. Seeking will not work correctly. Do you want to try to fix it? This might take a long time.
That is absolutely problem of VLC, as AVI files are created by Microsoft Muxer and AVI is Microsoft standard. WMP does not complain to such streams, only VLC does.
If you reject so-called fixing offer, VLC will play it back with no probs.
>>AVI: Stream 0 (video) has a non-zero start position of 30 samples (+1000 ms). VirtualDub does not currently support a non-zero start time and the stream will be interpreted as starting from zero.
Nonzero position at VIDEO is not a bug, but an attempt to keep video audio/synchronization. I don't know why Vdub does not like such streams, but that is absolutely valid situation.
As for out of sync, it would be helpfully to have a look at the stream you grab.