Microsoft has just released a new version of Windows Live Movie Maker which is a free video editing software available for both Windows Vista and Windows 7.

Windows Live Movie Maker now includes several new and impressive transitions and visual effects that are easily accessible from the new Office 2007 like ribbon toolbar. You can even pin these to the title bar of the program for quick access.

Microsoft discontinued Photostory with Windows Vista but the same Ken Burns effect can now be replicated in Movie Maker using the new Pan & Zoom effects (see screenshot below).

Movie Maker can render videos in full High Definition (1080p) format and you also have the option to upload movies directly to YouTube just like in Google’s Picasa software.

The only disappointing part is that Live Movie Maker won’t probably work with your Windows XP system.