VLC reports AVI broken, WMP plays it fine

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I have a Canon Powershot A720 DigiCam which records movie files in AVI. When I am trying to play these files in VLC it gives an error that the file is broken and needs to be repaired. If I use the option "Don;t repair" it still plays the file, only difference is that the time bar moves to the very end immediately and stays there. The file plays just fine in Windows Media Player.
I also have older files from Canon Powershot A620 which are also in AVI format and which are playing just fine.
I am attaching GSpot output of Both files. Can anyone tell me what is wrong, it is the file or the player.[/img]

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Attached output of Canon A720 file