For the past MONTH I've been fighting with Windows Live Movie Maker and it's been a pain in the #*$&%!!!!! Why can't Microsoft leave well enough alone (I say this with Vista in mind, XP was sooooo much better but 7 is pretty good, just a hiked up XP)? Missed the deadline for a couple of home haunt contests too because of it! %$#@!!!!!!
Just found a wonderful link from another disgruntled Windows Live Movie Maker user that makes the old version of Movie Maker work on Windows 7 (so far, it works like a charm, I didn't like the other version anyhow, it was harder to deal with).
Here's the link (but like Uncle Gates says, proceed at your own risk [although I had good luck with it]).
And yes, I'm too %$*@& cheap to go out and buy legitimate video editing software.