Help! I Can't Share my AVI files between pc's

in iPod + iTunes + AppleTV edited January 2014
I have my iMac set up with my iTunes library. I just bought a netbook and would like to be able to share my iTunes library with the netbook so that I can watch movies/tv shows while on the bike in the basement.

Sharing works with the music, and with video content that I purchased from Apple, but when I try to play a movie that I ripped (Handbrake) from my physical dvd library, it does nothing at all. I can see the title, and the length but nothing happens.

Am I unable to view non-purchased content on a second computer with iTunes?

(For the record, the netbook that I purchased was NOT made by Apple.)
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