Cap Sony Canon

Cap Sony Canon
Camera creates .AVI files. All caps. Unreadable by most video editing software. Help?

My camera, a Canon Powershot S5IS, creates some pretty darn good footage when it films video. However, it makes .AVI files (yes, all caps), as opposed to .mov, .mp4 or .avi files. This file, although very crisp and high definition when viewed properly, is foreign to every video editing software I’ve tried (Sony Vegas, Adobe After Effects, etc.). The only solution I know is to convert it into an .mp4, but that lowers the quality of the video substantially. Does anyone know what an .AVI file is, and how I can convert it to a standard movie file without reducing the quality by much?

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