I downloaded a free video converter called SUPER, thanks to a guy on Windows Movie Maker forums, it's a very good converter program that seems a lot better than ones u have to purchase, and it's free.

I converted my H.264 analog video to a .asf, and WMM handled it perfectly. No problems at all. It took near an hour to save the video to the computer, but all WMM vids take that long.

SUPER is amazing, I can't believe it's free. AVS has nothing on SUPER 0_0, it's faster with converting, has a lot of output formats and inputs, detailed parameters, etc. And yes, I used AVS multiple times before so I know.