I hear good things about Sony Vegas …
Move-Maker Live (from Win7) will happily co-exist with Move-Maker 2.n from the XP release (assuming you can find a copy these days – it used to be on the MS site, but I dunno if it still is …)..
The earlier version has (in this context) more … sophisticated audio tools, but it lacks support from newer file formats, so you’ll almost certainly need to convert the source file using Movie-Maker Live to something the earlier version can use if you want the audio handling.
That may or may not matter depending on what you are doing with the video output.
If MMlive can handle it, (and I can’t remember if it can or not … ) an alternative would be to export the audio, and use the [frankly brilliant!] Audacity – edit it in there and import it back into MMlive.
I’m curious now, so I’ll give it a go tomorrow on a Win7 box – (this workstation is running Linux and lacks the grunt to run any VM’s at all, so it’s *only* running Linux 🙄 ).