Yes, but the video format is not recognized by windows movie maker so you'll have to convert the files if you want to edit them. But windows media player will be able to play it just fine.

It does depend on what version of windows movie maker your using but yes it is. And it comes with its own software built into the device so you don't have to install any CD's. Which is very nice. And the software has its own video editing in it. But its not very good if you're wanting to mess around with different effects, its just for the basics. But its a bonus.