It seems to be a test.avi file related problem... can you please check with this file i just tested right now?
http://www.engr.colostate.edu/me/facil/dynamics/files/drop.avi
import cv2
cap = cv2.VideoCapture('drop.avi')
the code is ok and should work. You can check your dependencies and you can do one last try to ensure your opencv is installed properly, using official example code:
import numpy as np
import cv2
cap = cv2.VideoCapture(0)
while(True):
# Capture frame-by-frame
ret, frame = cap.read()
# Our operations on the frame come here
gray = cv2.cvtColor(frame, cv2.COLOR_BGR2GRAY)
# Display the resulting frame
cv2.imshow('frame',gray)
if cv2.waitKey(1) & 0xFF == ord('q'):
break
# When everything done, release the capture
cap.release()
cv2.destroyAllWindows()
This code will show your webcam. If it works i'm quite sure your problem is with your file.