You can either download Movie Maker 2.6 standalone or download Windows Live Movie Maker through Windows Live.
Like you, I have read that the Live Movie Maker version lacks features. It's supposed to be good for quickly and easily making a video and uploading to YouTube, but not for anything close to serious editing.
It turns out the special edition MM2.6 installs and works fine on Windows 7. It's the only version of Movie Maker that's a stand-alone download from Microsoft... get it at:
I have installed it, but haven't yet used it. It looks very familiar.