Reading http://windows7forums.com/windows-7-support/48557-windows-live-movie-maker-load-error-0x80004005.html it appears that some advise to uninstall ALL LIVE SOFTWARE.
You could do that.
But as far as I know, there is no cure for this software title. It's maker seems OK with the occasional crash. For example I know how to crash most versions by feeding two clips with different encoding. When this bug is reported the answer was "don't do that."
I don't like windows live mover maker that comes with 7. So I've installed version 6.1. It works ok but also freezes up alot. Can I uninstall "live movie maker" without any problems. Does anyone have any suggestions to get 6.1 running more efficiently.