To work around this problem, encode the video file again by using the Windows Media Encoder. To obtain the Windows Media Encoder, visit the following Microsoft Web site:
http://www.microsoft.com/windows/windowsmedia/forpros/encoder/default.mspx
After the file has been encoded again, the file can be edited and published in Movie Maker.

Note When you encode the file again, use the same settings as you used for the original file. Additionally, make sure that the output resolution of the encoded file matches the resolution of the source file. If you resize the screen-captured video, the output video may become difficult to see.