@BillKing -garak99
You'll have to ask that question to MSFT support rather than replying to a response of mine (Microsoft MVP's are independent advisors and not affiliated or part of MSFT Support)
An earlier Video driver and the initial RTM version of Movie Maker 12 (part of the Windows Essentials 2012 suite of products) share fault in the issue.
- Resolution for some has been rectified by singular or a combination of the following.
1. Updated video card drivers
2. Installation of KB 2741355 followed by updating Movie Maker 12 RTM to QFE1 (QFE1 is ghe subsequent version released after RTM)
Note: Movie Maker 12 QFE1 - relaxed the Direct X requirement down from (10 to 9).
If neither of those (two) options resolve problems, the only other valid resolution may be to return to using the prior version (previously recommended by MSFT)
For Vista, Win7, Win8 - Windows Live Essentials 2011 (which includes Movie Maker 2011)
For XP - Windows Live Essentials 2009 (2011 and 2012 are not available for XP)
- returning to a prior version requires complete removal of a later version and reinstall of the earlier (since no mix and match of different calendar year versions)
Unless something new occurs, the above may be the end of the (and the only) recommendations going forward short of upgrading to newer hardware or Windows 8 or switching to optional free or fee based third party software (considering installation and use
of any of the 'free' Live Essentials or Windows Essentials products also agrees to the Terms of Use allowing MSFT to change, modify, or discontinue the product without notice)
Windows DVD Maker is not part of the Windows Live or Windows Essentials programs. Support for it, and problems should be directed to the Windows support forum.