Sorry, VOD transcoding is not supported. Also .avi is not a supported format by either the Transcoder or Wowza. You will need to use a dedicated encoder to do convert the .avi to .mp4 or .flv. There are many options; Flash Media Encoder, FFMPEG, VLC...
Make sure the file you are trying to stream is located in the
Please test playback with one of the example players that ship with Wowza to make sure everything is configure correctly. For example