This is a straight comparison of the Windows Movie Maker built into Window XP compared to Windows Live Movie Maker for Windows 7.
Windows Movie Maker
Windows Movie Maker that comes as part of Windows XP is a simplified version on other free and paid for video editing software. It has a time line that allows you to stitch video and audio clips together or you can stitch pictures together and add music to it to create a picture slide show. It also has a story board where you can piece A/V clips from your camera together and add different transitions.
You can also import video from a variety of different sources as well as save your finished movie in a variety of different formats. You get the usual video preview screen along with the story board/time line panels along with a tabbed panel that lets you select from your video clips, audio clips and transactions etc.
Windows Live Movie Maker
Windows Live Movie Maker is a bare bones video editor compared to the old Movie Maker it just has a video preview window and a search panel for your videos and photos and has the new ribbon style menu bar at the top.
It has a selection of different transactions known as animations along with various video effects.
Windows Live Movie Maker is nowhere as powerful as Windows Movie Maker in Windows XP and I advise Windows 7 users to download Windows Movie Maker 2.6 it's only meant to work on Windows XP but I've successfully managed to get it to run on Windows 7 Ultimate before.
I have not used Windows XP in a while so if there is any inaccuracies in my description of Windows Movie Maker in Windows XP then I'm Sorry and I've currently not got Windows Movie Maker 2.1 installed to use as a visual aide in writing this review.
I'll do a Windows Movie Maker 2.1 vs Windows Live Movie Maker soon.