I've just reworked my prior "Dreamy Look" overlay so it works with either WMM 2.1 (XP) or WMM 6.0. Here's a sample
Dreamy Look Video
There are two installers depending on whether you are running on a
32-bit or 64-bit version of Windows. The installer will put the necessary files into, C:\Program Files\Movie Maker\Shared.
Blaine's Dreamy Look Title (32-bit)
Blaine's Dreamy Look Title (64-bit)
To use the new title
Go to 'Tools' > 'Titles and Credits' > 'Title on the selected clip'.
Type the text you want to appear below the photo as a caption or, if you don't want any text, type a single space.
Click on 'change the title animation'.
Under your list of one line titles should be a new one called Dreamy Look
Pick 'Dreamy Look', then click 'Done'.
Stretch the title so that it extends for the length of your video.
You might want to apply the "Fade In From White" and "Fade Out To White" effects to your clip, so that it starts and ends on a full white frame.