VLC 0.8.1 in Win2000

mpeg files look compleely normal, but all my .avi files are washed out to the point of being nearly B&W with odd splashes of random color (yellow or reddish). These same .avi files play fine in WMP on the same computer.

I've tried messing with various settings in VLC but must have missed the correct combination. Any advice will be greatly appreciated!