This is my second request as my first did not generate much enthusiasm, except for considerate_guy.  I have windows 7.  I downloaded Essential 2012 March 2014 for live mail and did not use any of the other programs in the bundle until this month and Movie Maker worked perfectly.  My mistake - I downloaded Essential 2012 again not realizing it was not an update but the same one I already had and at that point Movie Maker no longer worked.  All research indicated the graphics card was at fault.  Should have realized that could not be it as it worked before and I have made no changes, other than the download of Essentials 2012.  The research said KB2741355 would fix the DirectX9 issue but when I tried that Microsoft said it wasn't applicable.  I have two video cards - Intel and Nvidia - and Microsoft's recommendation for Intel, version 8.15.10.2761, (it supposedly updates 2321) does not exist or at least Intel does not list it on it's website.  Intel's utility indicates there is no update.  Nvidia had an update for the GeForce 525M and I did that.  Both cards support Direct X9 or higher.  I can only conclude the graphics card is not the problem.

Then there is the issue of D3dll.dll creating an access violation.  It appeared that Microsoft was going to correct that with a new version of Essentials 2012.  Did they, I'm not sure.  The version I had that worked was 16.4.3528.0331.  The versions that were quoted in the 2012 posts were 14.4.3505.0913 and 16.4.3503.728.  The version I have been downloading is V3.

I have downloaded Essentials three times, using the command line, wlarp.exe, Microsoft Programs and CCCleaner.  Each time all was deleted except the Windows Live folders with nothing inside them.  Each time all programs function except Movie Maker.

I would really appreciate some clarity.  I was hoping Microsoft would weigh in and at least point the finger at something. I spent a great deal of time trying to figure this out.  I spent even more time editing home videos and putting them in Microsoft's Projects files .wlmp and no one recognizes them.  Lost work, will have to do all over again if I can't get this resolved.