It's a codec problem. The logo videos are compressed with a codec which your computer doesn't have, or rather that the codec version on your computer isn't compatible with the one used by GK3s player code. Exact same thing happened for me. Forunately this seems to only affect the logo video, not any later cutscenes.
The easy fix is taking another avi file (any that can be played on your computer), moving it to the folder where GK3 keeps the videos and rename it to sierra.avi, logo.avi or whatever it's called. I'm sorry I can't be more precise, I don't have GK3 installed at the moment.
Another solution is to repack the video with a video editing program. It's hardly worth the effort, but it's what I ended up doing when making an easy-install version of the game for my girlfriend.
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