Microsoft has consciously planned to take the product in a different direction, as a result of which the new Movie Maker in Windows 7 does not have the same features as the old Movie Maker.
But as was posted you can always download and use the advanced version of the Movie Maker or now even use its portable version.
Portable Windows Movie Maker
One developer has taken the old Movie Maker a step further. He has created a Portable version of the program based on Windows Movie Maker 2.1. The new app, called simply Portable Windows Movie Maker, works on Windows XP, Vista, and Windows 7. And yes, since it’s portable, you can carry it with you on a USB flash drive or you can just run it from the hard drive without having to install it first.
Apart from being portable, it adds a few dozen extra features to the movie editing tool. It’s still version 2.1.4026.0, the version that comes with Windows XP+SP2, but with new effects; making it slightly better than the installed one. It has a total of 147 transitions effects and 76 video effects, more than double than what the original edition has.
UPDATE: In case your anti virus software alerts you to a possible malware threat, the author of this app has explained that it is nothing but a case of false positive, since the installer is packed with UPX exe compressor.