I'm using version 1.0, and I can't transcode a 9 minute AVI file. There's lots of room on the hard drive, and I can transcode other, shorter AVI files. I have deleted the AVI file, then exported it again from Premiere, and tried to transcode it in Encore. Every time it does the first pass, then freezes up. It doesn't matter what the transcode settings are, it freezes every time. Anyone had this problem?
I have had issues with AVI files that are over 2GB in size. I have not seen these issues in Encore but rather in After Effects. It is like as if the AVI envelope doesn't get closed properly. Can you try going out to another format, such as QT ?