When we say newer versions, we are referring to Windows Movie Maker version 6 which comes pre-loaded with the Windows Vista system. Since Windows Vista is a pretty advanced OS, we expected the latest version of the WMM to support webcam video capture as well. It's very helpful and economical since it comes packaged with Windows Vista, and you don't have to pay the extra cost just to have that tool.
So, the next question now is, how can you record a webcam video using Windows Movie Maker 6. Actually, like we said - you can't. You won't see the "Start Capture" tool in the File Menu of your latest Windows Movie Maker.
Your best bet is to look for alternative and cheaper software that would help you capture whatever you want to record from your webcam. Or, better yet, use the software that comes with your webcam to capture video and then import it into Windows Movie Maker for editing and enhancements. If your webcam didn't come with video capture software, you're in luck because there are free software applications available for you to download to do such tasks. You can find a good list of webcam video capturing software the shareware connection website.