I have the same issue. I have re-saved this project several times into several different formats and each time several of the video sections get distorted, sometimes the same section, sometimes new sections. If you look close at the video in the link below
the captions that I added are not distorted just the video, this confirms the fact that the distortion is happening in the conversion process from Windows Movie Maker project to MP4 or Media Player format. I uninstalled 2011 version and used the link posted
to install 2012 version and now have even more issues as well. The audio commentary that is added to the last video section is now an unrecognized file format and can't be used with 2012 version. An example of what I'm experiencing in available at
http://youtu.be/F64B5oCajSo
I posted this and sent it to all of our dealers only to find that they all replied to me about a problem with the video quality!
Please help or tell me of a program that is its equivalent that actually works.
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