Looks like you're running into the problem in KB 814836
(
http://support.microsoft.com/default.aspx?scid=kb;en-us;814836)
The KB article has a bunch of things to try - basically what's happening is
that Movie Maker is trying to use more memory than is available (or than can
be address on 32 bit machines - 2 GB).
The sure fire way to work around it is:
Method 4: Save the Movie in Smaller Sections
Save the movie in one half, or one third sections. This reduces the
complexity of the storyboard or timeline by reducing the number of
individual clips that appear on the storyboard or timeline. To save the
movie in smaller portions, follow these steps:
Part 1: Remove and Save One Section of the Movie
1.. Select a portion of the items in the storyboard or timeline.
2.. On the Edit menu, click Cut.
3.. On the File menu, click Save Movie File.
Note This saves the portion of the movie that is still on the timeline or
storyboard, not the section that you cut in step 2.
4.. In the Save Movie Wizard, follow the on-screen instructions to
complete the save process.
5.. In the Movie Setting dialog box of the Save Movie Wizard, click Show
more choices.
6.. Click Other settings, click High video quality (large), and then click
Next.
Part 2: Import the Portion and Save the Whole Movie
1.. When the Save Movie Wizard is complete, on the File menu, click Import
into Collections.
2.. Click the file that you saved in steps 3 through 5 of Part 1, and then
click Import.
3.. In the Select File to Import dialog box, click the file that you
saved, and then click Import.
4.. Click the area of the storyboard where you want to insert the file.
5.. On the Edit menu, click Paste.
6.. On the File menu, click Save Movie File.
7.. Follow the instructions in the Save Movie Wizard.
8.. Click to clear the Show movie when I click Finish dialog box, and then
click Finish.
If the problem continues to occur, repeat this method to divide the movie
into smaller portions.
-Gareth
