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This version allows for greater editing of videos including standard definition (4:3) videos and high definition (16:9) video support.
Windows Live Movie Maker requires either Windows Vista or Windows 7

Windows Live Movie Maker allows for direct upload to both YouTube and Facebook (though plug-ins). Users are also able to burn straight to DVD, play video on high definition (HD) televisions and save in a variety of standard and high definition resolutions - 480i, 720i, 720p and 1080p. Auto Movie allows users to easily create a video automatically in under one minute using selected images, captions, a title and soundtrack to go along with the slides.

The new Movie Maker comes with dozens of polished features over previous versions. Live Movie Maker introduces a smarter storyboard, allowing faster and easier editing than before; audio editing within the storyboard is also available. Detailed animations are included for adjusting videos and images with a range of filters and transitions.

The new version supports the following file formats: Windows Media Video (WMV), Windows Media DV-AVI, Microsoft Recorded TV Show, 3GP, 3GPP, MPEG-2, MPEG-1, Motion JPEG, JPEG, TIFF, GIF, Bitmap, PNG, QuickTime .mov and .qt, AVCHD, and MPEG-4 files. The last three are only supported in Windows 7, which has much better format support than its predecessor. In fact, Microsoft says today's release makes Movie Maker "the first application within the Windows Live Essentials suite optimized for Windows 7."