Windows Live Movie Maker Stops Working When Importing or Opening Project

I have read through other posts on this question but I have not been able to resolve. I am running Windows 7 and Movie Maker 2012. When I try to import a video (.vob) or open previously created project, the application stops working. I have checked the Event Log and found that the error appears to be related to the ntdll.dll file.

-

System

 

- Provider   [ Name] Application Error

 

- EventID 1000   [ Qualifiers] 0

 

Level 2

 

Task 100

 

Keywords 0x80000000000000

 

- TimeCreated   [ SystemTime] 2013-12-11T23:52:06.000000000Z

 

EventRecordID 43749

 

Channel Application

 

Computer Daddy-PC

 

	Security
-		EventData

 

MovieMaker.exe

 

16.4.3508.205

 

5111fa77

 

ntdll.dll

 

6.1.7601.18247

 

521ea8e7

 

c0000374

 

000ce753

 

14d0

 

01cef6cbf820644f

 

C:\Program Files (x86)\Windows Live\Photo Gallery\MovieMaker.exe

 

C:\Windows\SysWOW64\ntdll.dll

 

3cfc71e6-62bf-11e3-be44-f46d0495dc3f

I have tried uninstalling and reinstlling Windows Essentials. I have deleted and reinstalled the Windows Silverlight because that was suggested on another site. I have set the compatibility in Properties to Windows Vista, because that was also suggested. 

If the issue is the ntdll.dll file, what is the easiest way to replace this file? I also ran the System Checker and it found no problems with system files.

Any more suggestions?

Thanks.

Tim