Uhm.. Is the original AVI in HD quality? If your source does not have the information, then it is not going to magically appear.
Mind your capitalisation! B is not the same as b! Do you want the resulting stream to be 2 megabits or 2 megabytes per second? Also, if you have any motion in that video, there is no way HD content is going to fit into a 2 MB/s stream without serious quality loss.