Or to convert an AVI to PIC files, you can use the 'avi2soft' utility that ships with Softimage|3D. From your Softimage|3D comand prompt, type the following (altering paths as required):
avi2soft c:capturestest.avi c:picstest.pic
As you can see it just needs two values; input file and path and output file and path.
Hope this helps,
Dave