Have you tried any movies besides the one giving you trouble?
There was a lengthy thread a while back about this issue - most of the emuMovies releases WILL have problems in MALA.
The MAME intro videos, however, play fine. If those videos work for you, then you know you have things configured correctly, and your problems most likely come from the encoding on the video.
First, go here and download one of the MAME release sample vids:
http://www.emumovies.com/Arcade_Releases.htmThen, rename the sample vid so you can see if it works in your MALA setup.
If it DOES work, then you know you're configured correctly and the problem is in the way MALA is interacting with the codec. See the LAST message in this thread:
http://forum.arcadecontrols.com/index.php?topic=60128.0 . . .where a method is documented for converting to a format that plays nice with MALA.
Good luck!