Movie Maker from windows essential 2012 on windows 7

I spent many hours with the Movie maker and found very strange behavior. 1. When I have pictures and video clips randomly in the project then it stops at the start of the first movie clip while saving for DVD; saying that "there are missing or unusable files in your movie Maker Project that are preventing your movie from being saved.."  (error message 0x887A0005). In the project, The Movie Maker plays clips without any issue. The clips are playable in MS Media player also. 2. When I placed all the clips at the end of all the pictures and did the same, then also the same message appeared. 3. When I had only media clips only in the project, then it goes thru without any issue. 4. When I have only pictures (no movie clips) then also it goes thru without issue. 5. The problem is the mixed mode when pictures and movie clips are together. I had used the Maker before and never encountered this issue. I even reloaded The Movie Maker under my Admin account to make sure it is not corrupt but found no success. Codecs and file location are not issues. Perhaps an expert from Microsoft can answer about this behavior. A programmer has missed something and did not check the transition between pictures and movie.