Windows Movie Maker is a basic program that comes with windows, but it actually performs quite well. You can capture video with your webcam and import it into WMM or you can capture it in the program itself. Make sure your webcam is connected and click "Capture from video device". Click next and name the file, click next. Click best quality, then next. The start capture tab will start the recording and stop capture will cease it. Select finish when you are done. The video is then saved to the computer, and you can drag your video down to your timeline. You can do the same with audio as well. This video explains what Windows Movie Maker is all about.