I took a divx of a star trek episode & imported it into the beta 2 of Windows Movie Maker (for XP). I added a title and a fade.

It turned out ok (title shifts a bit on export).

Exported to DV avi then encoded with TMPGenc. It gives you a feel for what the program can do that the brain dead version 1 couldn't.

http://members.cox.net/movie_maker/
(clip is linked below the table of choices & is a 867 KB MPEG1 VCD file)

More on Movie Maker 2 Beta at
http://www.vcdhelp.com/forum/viewtopic.php?t=121406