I inserted an .AVI file (20 seconds long) into Windows Live Movie Maker and received this error-->The file might be corrupt or in a format that Movie Maker doesn't recognize. This movie can't be saved or publish until ******.avi is removed from the project.  Error 0x87160139.

Here is what I have tried to resolve this issue:

1. I have tried multiple .AVI files and .WMV files-->  YES, all have same error but they all play fine in Windows Media Player on this same Windows 7 (32-bit) machine which means the video files are not corrupted.

2. Installed K-Lite Codec pack.  YES, and still have same error.

3. Uninstalled & Reinstalled Windows Live Essentials. YES, and I still get the same error.

4. I also tried logging on as a local administrator just in case the software was trying to write to a part of the registry a user would not have access to and still got the same error.

My conclusion: This software is flaky and should be rewritten or at the very least give better error codes that explain what is wrong. I appreciate it comes for free but make sure software works before releasing it to the masses.

Does anyone from Microsoft (or elsewhere) have a clue what is wrong with Windows Live Movie Maker (16.4.3508.0205)?

After wasting 3-4 hours trying to get this flaky software to work I am at the point of recommending a video editing application that works like Ezvid.

Help Please!!!!!!!!!!!