First, what codec did you use for the conversion to avi? There is a huge variety of video which uses the .avi extension. Some of it is huge uncompressed 'true' avi (65 GB per hour of video). Then there is DV/AVI which is the one we recommend if you can capture or convert to it. But there are whole lot of other video formats which include mpeg-4 type formats such as the heavily compressed DivX and XVid ones. So we would need to have the exact properties of the file in question from when you right click on it in VS and select Properties.
Next, why exactly do you want to convert it to PAL? Since you have consciously converted it to AVI, then it cannot be for a DVD since a DVD requires mpeg-2. But if it were for a DVD, then I (and others here) would recommend you not bother with converting from NTSC to PAL. First, VS does not do this well. You really need a professional, specialised product to do it well.
If you think about it, if you have NTSC video, using the standard speed of 29.97 fps and a frame size of 720 x 480, then to convert it to PAL, the program has to throw away 4.97 frames per second to match the PAL speed of 25 fps. Using a program like VS, this means you will get slightly jerky motion in the converted video.
VS would also have to invent out of thin air, or existing pixels, an extra width of 96 pixels to expand the NTSC frame size to the PAL size of 720 x 576. By simply duplicating some of the existing pixels, which is what it does, you will get slightly blurry video. So taking both together, you cannot expect great results.
There are specialised conversion programs out there, such as the Canopus ProCoder. But they are professional and thus expensive.
Generally, we recommend that you don't bother with a conversion if you are talking about a DVD since just about every PAL stand-alone DVD player can play NTSC DVDs with no trouble.
And if you are making something to be played on a computer or on the internet, then it does not matter anyway whether it is PAL or NTSC...
