Windows Movie Maker support wmv, mp4, avi. YouTube is FLV format. You should convert video to that format compatible with Windows Movie Maker.
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First, you need to download the video from YouTube;
Second, convert the YouTube video to a format that Windows Movie Maker supports;
Third, import the encoded video to Windows Movie Maker.
And to finish the three steps, Any Video Converter Freeand Any Video Converter Ultimate for Mac could help.
http://www.tune4mac.com/mac-video-converter-freeware/
http://www.tune4mac.com/mac-video-converter/
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