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Try Movie Maker 2, I can't stress enough how much easier it is to use when you are new to this stuff than fooling with divx. This is assuming you have wm2003, ppc2002 users are definately better off staying w/ divx.
mm2 is made to be easy to use, it's main purpose is so everyday joes and edit their home movies. Try it out, it is literally 4-6 clicks and you are done if you've already got the the video file on your pc.
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