How to Do Picture in Picture on Windows Movie Maker
Windows Movie Maker is a useful tool for videographers who want a simple interface that allows for adding transitions, title pages, music and other basic video editing effects. While the program does have a lot of functionality, one of the things that is not built in is the "Picture in Picture" effect, also called "PIP." To get this effect in Movie Maker, take advantage of some free tools made especially for Movie Maker.
Navigate to the RehanFX "PIP" page (see Resources). Right-click "rehanpip.exe," click "Save As" and save the effect to your desktop.
Double-click on the PIP file on your desktop, then click "Run" from the popup window that appears. Click "Install" in the next popup window.
Open your Windows Movie Maker video where you want the PIP effect to appear.
Drag both the clip you want as the "picture in picture" and the main piece of video from the Collections pane to the Timeline, with the small clip to the left of the larger one on the Timeline.
Select "Video Transitions" from the Tools menu, then select "PIPS" from the list of video transitions that appears.
Drag the "PIP" transition box between your two clips on the Timeline.
Drag the video clip on the right over the video clip on the left until they overlap completely.
Click the "Play" button on the Preview pane to see if the effect looks the way you want it to look.