Your blurry problem could be from any number of things.
Most likely it is from the reduction of film quality through reduction. Something i've played alot with. No one wants to watch a blurry, fuzzy film. No matter how cool the footage might be. Or how cool the music is... if the film quality is bad I usually end up not watching the whole thing.
You will have to play around with that of course, so you find what works well for you. You can go with Dvix, alot of people use it, the only problem is not everyone uses it. People are also very lazy creatures. You can give them a link to go download the codec for dvix so they can watch your film. But chances are they'll come back, tell you the film wont run and never bother to download the codec anyways.
I use wmv9 for most things films I make. I find it give me the quality I want, along with the file size...one that's not so big people dont have to wait a day to watch it. Also, its a codec that everyone has.
Its been a long time since I've used Movie Maker. I do know that it has a play back speed. Any one of the film editors have it. But why your films are playing faster in even Media Player is a good question.
