Hi,
I just tried to reproduce your issue and you're right!
It seems to me that "Maya Software" or "Maya Hardware" rendering engine can render avi files but that Mental Ray can't.
Here is a workflow to achieve:
- convert your avi file to a sequence of still images (you can do it with MM if you wish: load your sequence - 3D Scene->Render Setup - choose the image format you want and click "render" )
- load the first image in place of your avi file in Maya (don't forget to check "use image sequence" )
- render with mental ray
that's it!
hope it helps,
Niko