Yes, the video.avi files work on computer. The only thing I changed was the encoder. I now use ffmpeg instead of mencoder. However, when I copy an old video.avi created with mencoder to the usb-stick & try to play it on TV, it doesn't play either & I get the exactly same "DATA USB" message on the dvd-player & a empty TV display.
I have attached a screenshot of SixDays.avi being played on my computer in xine & the xine stream information.
Also, here is the info displayed when I execute ffmpeg -i SixDays3.avi in a console:
Input #0, avi, from 'SixDays3.avi':
Metadata:
encoder : Lavf57.71.100
Duration: 00:13:40.35, start: 0.000000, bitrate: 782 kb/s
Stream #0:0: Video: mpeg4 (Simple Profile) (xvid / 0x64697678), yuv420p, 720x480 [SAR 8:9 DAR 4:3], 640 kb/s, 29.97 fps, 29.97 tbr, 29.97 tbn, 29.97 tbc
Stream #0:1: Audio: mp3 (U[0][0][0] / 0x0055), 48000 Hz, stereo, s16p, 128 kb/s
At least one output file must be specified