additional notes i have found out needed to make my solution work:

1) make sure you have the latest version of windows movie maker and the relevant updates for it

 2) make sure you have the latest drivers for your cap card.. these 2 are good (for DVC 100 at least)

 http://members.driverguide.com/driver/detail.php?driverid=811200 and http://driverscollection.com/?file_cid=40216917939e7259c8688ddb1af

3) i have heard that any dazzle over 100 doesnt work with windows movie maker... so 90, 100 etc should all work with this method -- i believe this is because versions newer than 100 record in a format that WMM doesnt support, whereas 100 and under record in AVI?

edit: in reply to someone who said WMM crashes, try updating the cap card drivers using the links i provided.. this fixed the crashes for me