Ah, Windows Movie Maker is different from Windows Media Player. WMM exports video in two formats, either .wmv or DV avi. If they ran it through Windows DVD Maker afterwards, it would convert that to dvd-video.
Any version of Windows Media Player should be able to handle .wmv. DV avi should also present no problems for VLC. Are you sure the file is uncorrupted?
I'd still like to see what MediaInfo or Gspot say about the file.