Background not showing up in animation

Hi!  I'm trying to render an animation in SW animation tab (no PhotoView) with a custom background made from a .jpg file.  The background shows up correctly while it's rendering/compressing to avi, but the actual avi just has a white background.  I've tried setting the back ground to the environment, but it comes out as a bunch of smeared horizontal bars (static camera).  It does this with every render option: save as avi, save uncompressed, save as series of bitmap images.  I'm using SW2011 SP 4.0.

Any help is appreciated!

SolidworksMotion Studies