I need to edit it, once I do it saves as a a .wlmp. The problem seems to be that YouTube is getting pissy about the audio for some reason. There is a lot out there on help forums about this problem but it all seems to be related to Vista and people copying the program from Vista to Win7. I can only guess that it's a codec problem, but I'll be damned if I can find a place to download new Windows Live Movie Maker codecs.
If I try to upload the edited file, which saves as a .wlmp without going through Windows Live Movie Maker then YouTube says it can't convert the video at all.
EDIT: Ok, I figured out how to convert the .wlmp file to a standard .wmv. I'm trying a manual upload to see if it works.