You can: add text, stitch entire videos together, add music, add some simple transitions, and trim the ends of a video. That's about it, in a nutshell, although I'm hopeful that they'll be adding more features later on. For now, it's good enough for simple editing/combining videos. For saving videos, you can save your project to work on later, or you can output the video at 640x480 or 320x240 (both in .wmv format).
[Download Windows Live Movie Maker Beta] (click on the download link on the right, then you can choose to install just Movie Maker)
[Changes from previous Movie Maker versions - Windows Live Development Blog]
And now: some screen shots.
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