*SOLVED*
I can't believe it, spent a few days, and now happy to say I figured it out!!
COLOR DEPTH of video driver!!!
breaks with 24bit, works perfectly with 32bit!! was as simple as that.
right click on desktop->Properties->Settings->Colors->TrueColor 32bit.
If I change it back to 24, again bsplayer doesn't display video for that AVI...
This little trick even works during playback, switch between 24 and 32, breaks and works respectively.
thanks for the tip about the video driver...
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