First off..your project is a mess--anyway..
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You also want to use Live Movie Maker../
...which has 2-editions..2011 and 2012..
2011 is for Vista...and 2012 is for WIN 7../
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Windows Movie Maker..for XP or Vista..are also different..
The Vista version of WMM--is version#6
XP--uses version#2
There is a downloadable version#2.5
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Your useing RealPlayer--to aquire the video file..
Then you are useing SAVE TO:/getting that file to a folder../
(is where you lost me)../
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First--what is the video file extension--that you SAVED TO:/Folder(where)?../
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Next---when useing WMM..are you useing Transitions..?
Are you useing the TOOLS TAB..options..set some of those--settings../
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That's about all's I can say..because-I think your making your project--more difficult than it needs to be../
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You can look at some of my video projects on YouTube..
Channel Name=MisterTymes
YouTube--has changed that to.Mark SM