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Thanks very much, problem fixed. I had  the avi file in the wrong place and was missing small bits of coding.

function room_AfterFadeIn() {
  PlayVideo("testing.avi", eVideoSkipEscKey, 0);
}

Thank you for your fast reply. However i have tried the playVideo command but i still keep getting errors. I have looked through the manual and it does not specify where to paste the code. I have tried directly at the beginning of the room script and the error below is all i keep receiving.

Failed to save room room1.crm; details below
room1.asc(3): Error (line 3): Parse error: unexpected 'PlayVideo'

I am an extremely new user to AGS. I am creating a point and click adventure game for my college assignment. I have done all my design work and am now about to start creating my game. How do I add a video intro for the game.