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I like Photo Story best if all you're using is still photos. It is drop-dead simple, and is really best at adding multiple music tracks. It's easy to add narration – no narration feature in the latest Movie Maker. But, I wouldn't use it for more than 40 or 50 pictures.
The advantages of Movie Maker are:
1. it can create longer / larger movies than Photo Story
2. it can combine stills and videos
That's what comes to mind off the top of my head anyway.