Nova:
No, theres no way to convert an .avi into .pmf ...
It has to be '.avi " or whatever video format into > MPS > PMF.
Jollybert:
I would do it explain the process.
The thing is ... The process is kinda indeppth and would take practically a "GUIDE" to explain how to edit the colors via "Hex editing" or by the "TGA" picture. what you practically do is get the software called tgaWave CS or "wavepool ver 3"
ANd play with them ^^ My waves down there in my signature were made from zero with hex editing, but with those softwares you can make a better job and smoother.
Good luck!