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The vidc.rlec=ativdacc.drv entry in the [installable compressors] section of the SYSTEM.INI file can cause problems when playing large RLE-compressed movies. Remove this entry from the SYSTEM.INI file. For update drivers, contact ATI Technologies Inc..

Operating and Performance Tips: Performance and the Smartdrive Disk Cache.
If your computer uses the double buffering feature of MS-DOS 6, AVI files may play slowly on your computer. If your CONFIG.SYS file contains command that starts SMARTDRV with the DOUBLE_BUFFERING parameter, add the /L switch to the SMARTDrive command in your AUTOEXEC.BAT file.
If adding the /L switch doesn't increase the playback speed enough, try removing the DOUBLE_BUFFERING parameter altogether. Before you remove DOUBLE_BUFFERING parameter, consult your Windows documentation or MS-DOS Help to determine whether your computer needs the parameter to run correctly.