From YouTube help ( http://www.google.com/support/youtube/bin/answer.py?answer=55745 ):
We recommend the following settings:
* MPEG4 (Divx, Xvid) format
* 320x240 resolution
* MP3 audio
* 30 frames per second
Resizing your video to these specifications before uploading will help your videos look better on YouTube.
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WMM does not hae many options when it comes to editing video. I would recommend using a free, open source editor and the above settings that YouTuber recommends.
List of free open source video editors: http://en.wikipedia.org/wiki/List_of_open_source_software_packages#Video_editin g
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