Now I have some more questions about AVI files.......

How do you create a "smooth" aimation in an .avi file? With Flash you can set a frame rate and the software generates a transition from one frame to another thus giving a smooth transition. I have not been able to create that type of smoothness with a .avi file. I did figure out that I can generate a ton more frames and decrease the display time to approach it but none the less, it is not as smooth. Maybe I do not fully understand the phrase "key frame" and what the significance is. I also find that under some codec's, I can set an option for the frame to be every X frames.

Am I heading down the wrong path by trying to create a nice animation with a .avi file? Do I need to install some additional codecs?

Again, my final goal is to create some animations that I can insert in some movies I want to edit.