Hi Guenter,
Video layers support both AVI and MPG. We'll fix the documentation to avoid the ambiguity - thanks for pointing it out. I also noticed that the documentation looks out of date for the video file source information - it was modified to support multiple source files. See the example at the bottom of this post for the correct pathname syntax.
The first sanity test for playing a video layer in ArcGlobe is that it must play correctly inside Windows Media Player. If it plays OK here, then the codec question is usually not important. A workaround-of-last-resort for a difficult video file is to convert it into a folder of frames (eg: a folder of JPG files).
In Beta 2 (and, to a lesser extent, PreRelease), video layers are very sensitive to even very small issues inside the AGV/XML, so it's possible there might be a small problem with your AGV syntax. Apart from the video pathname change, two common content mistakes to look for are: an invalid pathname to the video; or a mismatched resolution of the video between the file and the AGV.
Something else you can try is to export a video / animation from ArcMap. As long as the camera does not move, then you can request an AGV file to be auto-created on export. This will be an 'ortho' (or top-down) video.
FUTURE NOTE:
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Now, having said all that, you need to be aware that the AGV specification is undergoing some significant changes for ArcGIS 10 Final (after PreRelease). This should make it an easier format to work with, and improve its ability to survive slight errors. It also means that the AGV file you work on for Beta 2will need to be reworked into the new formating to work in Final.
Thanks, Nathan.
3D Team, ESRI.
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PS: Here's a simple template AGV file that might help. You will need to update the <VideoData> value, plus the <Height>, <Width> and <FrameDuration> tag values.
<?xml version="1.0" encoding="UTF-8"?>
<Layer>
<Name>AVI as Camera</Name>
<VideoOverlay>
<FrameSource Type="File">
<VideoDataFiles>
<VideoData VideoFile="C:\test\SecurityCamera1.avi"></VideoData>
</VideoDataFiles>
</FrameSource>
<Video ProjectionType="Camera">
<Height>540</Height>
<Width>960</Width>
<FrameDuration>200</FrameDuration>
<Camera>
<FOVAngle>55.0</FOVAngle>
<Position>
<Longitude>-117.194374</Longitude>
<Latitude>34.056886</Latitude>
<Elevation>405.0</Elevation>
</Position>
<Heading>330.0</Heading>
<Tilt>40.0</Tilt>
<Range>10.0</Range>
<Roll>0.0</Roll>
</Camera>
</Video>
</VideoOverlay>
</Layer>