i am using 7.10 as well and the latest wine, via 'Adding the WineHQ APT Repository' (
http://www.winehq.org/site/download-deb )
1. pls paste the output of "./wine_wrapper_00x.pl REGADJUST"
2. try it with CONTROL+RETURN to copy the filename to the command line in TC, then pressing RETURN to actually start it
i sometime get an error even if, theres no space, but mine here is
'error executing program'
3. try renaming the .avi to test.avi and move to c:\ to lower dir or filename issues!
4. try changing the DEBUG-level
a. search for my $DEBUG=0; in wine_wrapper_00x.pl
b. change it from 0 to 9
c. start TC in a terminal ( seb@ubuntu:~$ wine .wine/drive_c/totalcmd/TOTALCMD.EXE )
d. watch the output after you tried to start files...
maybe paste the output here, if it looks buggy