This issue is known to occur if the graphics card driver is not updated properly. I would recommend you to update your graphics card driver.
Step 1:
Refer this link for more information:
http://windows.micro...commended-links
You can also download the latest drivers for your graphic card from the manufacturer’s website.
Step 2:
If that doesn’t help, then uninstall Windows Movie Maker completely.
Follow these steps to uninstall Windows Movie Maker:
1. Go to start menu and click on Control panel.
2. Click on programs and then open Programs and Features
3. Select Movie Maker and then click Uninstall.
Refer this link:
Uninstall or change a program:
http://windows.micro...hange-a-program
Step 3:
Redownload Windows Live Movie Maker from the link mentioned below and reinstall it again.
http://download.live.com/moviemaker
Reply back with the status.