It depends on what codec that AVI uses. You can find that out by opening the file in Windows MovieMaker and then going to File/Properties.
If you're lucky, it will use the DV codec.
In that case your only issue will be that it will be a standard definition video -- and you'll be putting it into an HDV project.
Remember, standard DV has less than a fourth of the resolution of hi-def. You can blow it up to fit the video frame, but it's likely to look over-rezzed and fuzzy.
Thanks fellas. Much appreciated, as always!!
Good luck, and hope that you've gotten some help. When you get the .AVI, the first thing that I would do would be to run it through G-Spot, to check out its specs. completely. If you have any questions, specific to that file, a screen-cap of the G-Spot GUI with the file loaded, would go a very long way to help others help you with that file. Hint: use the little "camera" icon in the lower-middle of the editing screen's Toolbar to attach that screen-cap. Doing a screen-cap will also save you a bunch of typing - the adage that "a picture is worth a thousand words," is really ture in this case.