Since you're using XP, 512 MB RAM should be enough to render videos in Movie Maker. Your processor seems capable enough to handle these kind of things. Maybe what you experienced is Memory Shortage, since you encountered BSoD. Try closing other programs open. I guess Movie Maker won't require you much memory since it's not like other Video Software which really requires more memory like After Effects and Sony Vegas. It might also be some conflicts in your system or your drivers might be out dated. As suggested before, try updating them.