Confirmed. It won't play on my Vibrant running 2.2 either. Worked fine on 2.1.

 

Me either. I have tried copying from the back up I have all different ways. I know that the file is not corrupt. I noticed that the sd card now shows up as two drives, the root of SD and "external_sd" if you open external_sd there are no directories. so the the files system obviously changed and I know this movie link is sensitive to that so I am sure they broke the security with this update.

I also notice if I try top play it from the files menu it starts but says it's locked would you like to unlock now but nothing happens.

 

to fix avatar:

Go to menu, settings, applications, manage apps, tap "all" tab at the top, find drm protected content storage, tap clear data.

then soft reset your phone 2-3 times (hold power button until it reboots to vibrant screen). try to play avatar, it will work.

note: If you have other movies installed I do not know how they will be affected.