I've tried several versions of the Xvid binaries and no matter what when I try to watch an Xvid video I get windows media player saying "Playing" but the bar doesn't move, no sound, no video, and it bumps my explorer.exe cpu usage up to 100%.
What container and what splitter? Is XviD actually being used to decode? Simply having it installed doesn't mean that it is the decoder being used. You might also want to try a player like mplayer or VLC that doesn't rely on installed codecs/filters.
I already tried opening the file using Gspot, but it says that the avi file is invalid. Avicodec and AfreecodecVT freeze the PC as soon as I open the file. This is kinda strange since I already had installed the xvid codec and opened the same file with gspot and play it with windows media player without any problems.
If GSpot doesn't recognise it as an avi then that would mean that the header is corrupt or missing and that Divfix won't recognise it either.
Why not try the alternative? Just get AVI Codec to see if it runs properly, get FFDSHOW for the right codecs, and get Media Player Classic to play it. If that doesn't work, then I would try to get a new copy of the file you're using.