Ok, cant post attachment.

Here are the steps.

create a blinn or whatever you wish
attach movie texture node to the color channel
in attribute editor for movie go pick the avi file
turn on use frame extension
below that in the frane extension click on the click through icon to the right of it
this will open an expression editor
type the following in at the bottom than hit create

movie1.frameExtension=frame

**movie1 = is the texture node name for the movie**
as Mike mentioned you may have problem with mpg, mov.

I will try and post my result