Error with MKV -> AVI with XviD4PSP

[Born4battle]

This is my error message.

PLATFORM
------------------------------
OS: Microsoft Windows NT 5.1.2600 Service Pack 2
OEMCodePage: 437
Language: ENU
DecimalSeparator: .
Framework: 2.0.50727.1433
Processors: 2
Machine: BENNETT
UserName: Guest Account
SystemDrive: C:

XVID4PSP
------------------------------
Version: 5.036
Created: 10/18/2008 11:36:32 AM
TempPath: C:\Temp
AppPath: C:\Program Files\Winnydows\XviD4PSP5

FILES
------------------------------
School Days 12 (DVD).mkv >
School Days 12 (DVD).avi

TASK
------------------------------
Format: AVI
Duration: 00:25:06:757 (36126)
VideoDecoder: DirectShowSource
Resolution: 0x0 > 16x16
VCodecPreset: XviD HQ Ultra
VEncodingMode: Quality
VideoCodec: h264 > XviD
VideoBitrate: 960 > Q3.0
Framerate: 23.976
SourceType: PROGRESSIVE
FieldOrder: UNKNOWN
AudioDecoder: 0
AEncodingPreset: MP3 CBR 128k
AudioCodec: OGG > MP3
AudioBitrate: 0 > 128
Samplerate: 48000
Channels: 2

VIDEO ENCODING
------------------------------
Encoding video to: C:\Temp\0000.avi
XviD Q3.0 16x16 23.976fps (36126 frames)
Error:

I also have this as the preview:

[Baldrick]

I can't see any preview.

Can you play the mkv in windows media player? If not then install ffdshow.