Unknown error adding AVI file in Video Seqeunce Editor

I`m on fedora18, ffmpeg installed.

I added an AVI file, about 750 MB. Blender says File could not be loaded. I started blender with -d option and here is what is says in console:

blender -d --verbose DEBUG
Color management: using fallback mode for management
Blender 2.65 (sub 0)
Build: 2012-12-20 14:45:19 Linux Release
argv[0] = blender
argv[1] = -d
argv[2] = --verbose
argv[3] = DEBUG
connect failed: No such file or directory
read file 
  Version 265 sub 2 svn r0

read file 
  Version 262 sub 3 svn r0
recalcob Cube
(same lines as above many times, and the last and important part I suspect : )
undo push Translate
undo push    Video Editing
not an anim: /home/jay/temp/Revolution OS.avi
undo push Add Movie Strip
undo push Toggle Channel Editability
not an anim: /home/jay/temp/Revolution OS.avi
undo push Add Movie Strip

When i right click on the error message, I have two options “Edit Translation” and “Edit Source”. Clicking on either of these tells

Active Button not found

What makes it think the video is not an anim? Did I add it in the wrong way? (I opened blender in Video Editing mode, and opened file browser -> add movie strip

Newbie Here.

Thanks in advance,
Jay Aurabind

The same blender version in arch linux works fine. What could go wrong thats distro specific?