simply put..... download and install movie maker 2.6 ,   find  movie maker folder for windows XP  copy  the folder....   on win 7 pc navigate to programs x(86) folder  open movie maker 2.6  and paste the movie maker windows XP files over the 2.6 files    choose replace for all.........   then open movie maker 2.6 and congratulations  you now have   movie maker with capture from video device running on win 7....              your welcome          if you don't have an old pc that has win xp   to copy from  search online  or you can always ask me to upload a copy..... also I stumbled across this discovery myself  no one had an answer so I decided to "play around" I noticed old movie maker was 13mb  and 2.6 was 12mb    so I just figured swap files... I really couldn't believe it worked and I've been trying to pass it on for over 3 years.... people complain but don't listen to good advice