Please refer to my previous threads in April 2013. In summary Uninstall completely the latest version, Install Version 2.6 if you can find it....this seems to correct the video codecs (my guess). Upgrade to version 2011 (NOT 2012).
Also, if you are using re-writable discs, you do not need to waste any discs. DVD Writer will simply overwrite any previous failed attempts.
====================
My original thread April 2013
"
I have actually resolved the problem. It struck me that my problem only started when I updated my version of Movie MAKER (yes MOVIE MAKER). So on the search for an older version on the MS Website I found version Movie Maker v2.6, downloaded and installed.
Next I downloaded a later version (2011) of Microsoft Essentials and then using DVD Maker, I re-burnt a previous failed WMV file and Hey Presto! everything was back to normal. I can only assume that the latest version of Movie Maker(2012) somehow corrupts
an important DLL or AX file. Incidentally I now have 2 versions of Movie Maker on my PC i.e. 2.6 and version 2011 (Build 15.4.3555.0308). Obviously I use the latter.
I hope this helps. "
====================