SAME THING HAPPENS TO ME! 
so annoying,, that at least a error message doesnt come up at least. win7 64 4gig ram. so 4gigs is the max for the vid size i take it? guess only fix is, to make multiple sketchup file copys and then doing it in parts, and then put vids together in some movie making program. https://www.youtube.com/watch?v=NK9IULYXvTU
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RE: Re; Animation output - DOES NOT create AVI file when it's aposted in SketchUp Discussions