Forget movie maker, it doesnt have capture. I dont know what people are on when they say it does. You can also forget about movie maker live as its a joke. Download movie maker 2.6, its the old version that works on Windows 7.

 Anuway dont use movie maker to capture (doesnt even have that option). But this does work with studio 11 http://www.youtube.com/watch?v=nFQnaWYaml0 .

 Its a great screw around and I cant believe they are still selling this product with such an obvious flaw.