When you say they play fine locally, but not over the web, are you referring to the same machine? The ability to play a given AVI is primarily dependent on the correct codecs being available on the machine playing the file. If the browser is hanging, it could just be that the entire file has not yet been downloaded. If the file is not streamable, then the entire thing must be downloaded before playback can begin, and this could make it seem that the browser is locked up, when in fact it's just in the process of downloading the file.
I would try pasting the URL of the video into a browser to see if it can access the file from the web server. If it can, and it prompts you to download or open the file, then the web server is not the issue. If you can download and play the file on a given machine using media player, then you should be able to play it remotely, but if it is not a streamable file, then media player will hang until the entire file has been downloaded.