Convert AVI to VLC

Converting Audio Video Interleave Files directly to a VLC Playlist (.avi to .vlc conversion) is, per se, not possible. But you can certainly add an AVI video to a VLC playlist, thus generating a .vlc file.

There is really no need for a conversion, since the VLC Media Player supports a large amount of media formats, including .avi files, and also comes with its own conversion utility accessible through the 'Media -> Convert/Save as' function.