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In previous versions of Windows Movie Maker I could take a raw video file and specify the file size to compress it to, and Movie Maker would compress it accordingly (with the appropriate loss in quality). Live Movie Maker, which comes with Windows 7, doesn't seem to have this option. I can only set specify the requested quality.

Is there any way to specify the size of the target file for Windows Live Movie Maker?

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Unfortunately, the newest version of movie maker removed a lot of good features, leaving it a shell of its former self. You will probably have to look to a 3rd-party tool for video compression (after exporting your video from movie maker), such as handbrake or winFF

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