Can you convert a MTV file to avi format?

Well, try Womble MPEG Video Wizard DVD, it's not a pure converter, however it's a very useful video editing software in conjunction with format conversion functionality.
Import MTV file on the first track of the timeline; click the red button on the timeline's toolbox to export the file, remember to select the"save as type" field with "AVI", by this operation, the format of the output file will be changed to .avi format.