I just started using Movie Maker and am having possibly the same problem, but I don't think you guys have answered this. I am recording Killing Floor gameplay using D3DGear with mpeg-4 codec in 1080p. I lose tons of quality, not when I Export/save, but when I Open/IMPORT the file! If I open the raw gameplay file in VLC, the footage looks exactly like when I was playing. However, when I then import the file into Windows Movie Maker, it's already lost a ton of quality before I even export it. Does the preview you work with in Windows Movie Maker just show the file in less quality than it really is, while you work on it? Or is it really losing quality when importing?