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H264 and AVI are two different concepts entirely, and thus can not be compared to each other. AVI is a "container", which describes only how to lay out the contents of the file, while H264 is a "codec", which describes how the video is compressed and decompressed. You could consider AVI to be a shipping container, and H264 the contents of the shipping container. Other containers include FLV and MKV. Other codecs include FFV1, H261, H262, H263, MPEG4, MJPEG, and WMV. Check Wikipedia for a comparison of common codecs. It should be noted that a file size comparison is a poor way of determining algorithm efficiency. Many codecs can be configured to provide lower quality (up to completely unwatchable) to reduce file size; to compare them fairly, make sure you're comparing each codec at the same resolution and quality.

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