Well, I'm not really certain what your question/problem is, is it already converted? Where did you get the file? Is it divx?
Well, divx is actually another format of AVI. Long time ago AVI was created as a primary video/audio compression. Now it's compression can't beat other compression formats like WMV or MOV.. etc. So they created divx format for AVI, which after converting, it'll still be AVI, though when you run, you'll need the divx codec. Try downloading K-Lite Codec Pack, it contains almost every format you'll ever need to play anything.
K-Lite
http://www.free-codecs.com/download/K_Lite_Mega_Codec_Pack.htm