Windows Live Movie Maker 2011 makes videos in really bad quality?

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Sarah

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I recorded a video with my camera and when I put them in the computer, they turned out HD. And when I put the videos in Windows Live Movie Maker, the quality was horrible and widescreen. Does any one know how I can fix this?

Or is there a better software then this that's for free?
 
the preview you see in WLMM 2011 is low quality so that you can edit it efficiently. when you render the project you can set it to 1080p HD resolution.
 
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