Hello there,
Movie Maker 2 and MPeg, JPeg and MP3's often fail to work well together.
You could always solve this failure by using the rotate 180 effect. It will of
course slow down everything you do thereafter to the clip and of course
increase the final compile time.
A better solution, and to remove the chance of yet unknown problems arising for
you, you should convert the whole thing to AVI. There are many converters
around for free use. Go to my website and click on GREAT LINKS > IMAGING >
KNOWLEDGE BASE > VIDEO HELP. That web site is the very best knowledge base I
will probably ever see.....try it and see for yourself