I was able to use the Full Frames (Uncompressed) option to export a short test clip to AVI. It played fine in Windows Media Player, and VLC played it but with some strange distortion. There might be something funny with your setup that's not really within the scope of this site to troubleshoot, but as a starting point use MediaInfo to determine what codec the AVI file contains, and GraphEdit to figure out what decoding path your system is attempting to use to play it.
Also you could try using x264vfw as your codec, which VLC will definitely play and it will perform/compress much better than the default installed compressors.
Here are the x264 settings that worked well for playback in both VLC and WMP.