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Windows Movie Maker IS compatible with YouTube. I make videos using it and I post them to YouTube.
Once you have made your video all fine and dandy, click the "Publish" button. When it asks you where to publish is to, click "This Computer." Then it will ask you what quality to publish it, check the "Best quality for my computer" or whatever it says. It does the rest of the work for you. Exit out of WMV, go on YouTube, click "Upload," put in your info, and choose your movie from the folder you saved it in. I do it everyday almost.
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