Is a divx (avi) file able to get infected ?

I have Win XP SP2 with Avast home installed and it has picked up a divx (avi) file and reports it as a Trojan Horse

The file has been on my computer for 12 months and has only now been picked up

Is this a false warning or should I delete it ?

I would have thought this could be an FP as I don’t recall seeing anything about .avi files being infected, though the same was thought of .jpg files at one point.

How big is the avi file as both of the scanners below have a 10-15 MB limitation I believe.

You could also check the offending/suspect file at: VirusTotal - Multi engine on-line virus scanner I feel virustotal is the better option as it uses the windows version of avast (more packers supported) and there are currently 32 different scanners.
Or Jotti - Multi engine on-line virus scanner if any other scanners here detect them it is less likely to be a false positive. Whichever scanner you use, you can’t do this with the file in the chest, you will need to move it out.

If it is indeed a false positive, add it to the exclusions lists (Standard Shield, Customize, Advanced, Add and Program Settings, Exclusions) and periodically check it (scan it in the chest), there should still be a copy in the chest even though you restored it to the original location. When it is no longer detected then you can also remove it from the Standard Shield and Program Settings, exclusions.

Also see (Mini Sticky) False Positives, how to report it to avast! and what to do to exclude them until the problem is corrected.

Thanks I think it is a FP

The .avi files are around 700mb each

Thats odd. I’ve never seen a false positive on video file. Not even heard of it.
What was the file detection name (i.e. the “malware” name under which your video files were detected)?

Yes, but only if they use an expliot in the media player software.
I have seen a virus scanner pick up a trojan in an avi file. Although it was on a p2p network.

You can use Alwil FTP server as a way to transfer big files. Upload them to ftp://ftp.avast.com/incoming (please, note that you won’t have READ access to the ftp server, just write - so you won’t even be able to see what you’ve just uploaded).