If you have had prior experience with Windows Movie Maker2 then I need to tell you this is a different product with a simplified approach to creating videos.
Way simplified. Okay, check out the video and then a few remarks.
I'm not going to lie, I had issues with WMM2. When I first started out that is the software program I used to edit my videos. The software worked fine if I kept the videos very simple with minimal cuts or transitions.
As I gained more experience and wanted to try new things WMM2 would often hang or crash. I became one with the Blue Screen of Death.
I cried, let me tell you, I cried a lot until it came a time when I had to walk away and find another video editing program. I still used it to make titles or other small tasks. I found other programs that were better.
I downloaded a beta version of Windows Live Movie Maker in the summer. It was not the complete program. I understood that. I didn't anticipate how stripped this version was compared to the prior version.
There were howls on that message board. The vocabulary used to express feelings about the new version would have scorched The Devil's ears. Folks were not happy. There was a confusion of expectations about the direction of the product. We thought they were going improve the existing version.
Microsoft Created a New Product for Entry Level Users.
So here is the deal. If you are a total video newbie on Vista or the new operating system and you just want to do very basic mixing and matching of photo/videos then Windows Live Movie Maker is your program. If you want to upload to YouTube in one step, this is your program.
If you want to add narration, overlays or do anything other than basic transitions, cuts or add photos this isn't your program.
I suggest sticking with your prior version of WMM2 or checking out Corel Video Studio X2 or Serif Movie PlusX3
There are other products but I know these work and have good features for the cost of the software.
I don't think this is a bad way to go for Microsoft; there is a market for simplified video editing. Most of us just were not prepared for how simple the program has become.