AutoUpdate makes MovieMaker2 to Crash Computer

Hi Guys and Computer Gurus,

My computer's video hardware worked fine with MovieMaker MM1 (1.1.2427.1)
but as soon as it was upgraded to MM2 (2.0.3312.0 or 2.1.4026.0), my machine
crashes when I start capturing from video device. Since there was no way of
rolling-back MM2, I had to wait till there was a need to re-install XP.
After reinstalling XP, I avoided installing MM2 and used MM1. Everything was
OK. As soon as I upgraded to XP SP2, MM1 was overwritten by MM2 and the
computer started crashing again as soon as I start capturing from video
device. I had saved MM1 separately for the rainy day but with XP SP2 it
quietly overwrites MM1 with MM2 as soon as I restart the machine.

How can I prevent MM1 from being overwriiten by MM2 in Windows XP?
Will replacing copies of MM2 with MM1 at all locations (such as
SoftwareDistribution, System32\dllcache, ServicePackFiles and ProgramFiles
etc.) solve my problem?
As I am connected to the net all the time, will MM2 download and install
quietly (as I have set AutoUpdate to ON)? Is MovieMaker2 also in this list
of recommended Update?

How can I find out why MM2 doesn't like my video hardware and rectify the
problem?

Hope you experts can help me.

Thanks in advance