Message from our Senior Technician, Chris Herbert:

Hi All,
We've used the flip cameras on two different versions of Movie Maker (the most up to date version in Hel314 and an earlier one in the lab) and as long as the following codec is installed, the cameras seem to function perfectly:
Really depends on the issues people are having - if it is merely viewing the files in Movie Maker, then yes, it is a codec issue. However, if it is getting the cameras to work with the PC (ie be viewable via My Computer so the files can actually be seen in a folder) then it is a hardware security issue - perhaps Group Policy set too high or similar - perhaps discuss it with your technical people