Maybe his windows is a copy not a geniune one!
it would had no impact on Windows Movie Maker
Do you know from experience?
Yes, personally I've a geniune windows vista in my laptop which come pre-installed.
but you know I live in Iran and here we have no law/rule for "Copyright"!! with USA embargo, people cannot buy legal license from Microsoft. almost everyone here use illegal copy of windows (and every other program...) and I've worked with them (in my friends/family... computers). so my answer to your question is "Yes", I know it, because I've worked with that.