Canon is not the most linux-friendly company (as I learned from my printer) but afaik there is nothing unusual about the avi format they use.
A few things to try;
-Download another video from the camera, keep it short.15 seconds or less.
-Check your model at this sites HCL to see if others are having problems.
-Make sure kaffeine is not the problem. Try downloading some avi's from google video.
As you probably already know, the multimedia packages as supplied with Suse are mostly useless.
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