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#11
I don't know how to check the settings on movie maker. I have the 2012 version. Anyways, I downloaded VLC and my videos are actually in color again! There's a catch though. I'm making a slideshow and I'm including video recordings that have been converted from VCR. The pictures that are in the slideshow are in color in VLC, but the converted video recordings from the VCR are still in black and white. As you said, VLC has different codecs so I really need to find an alternative solution, but I'll keep trying!
VLC can convert video files from one format to another. Try converting your VCR videos to another format and see if you can then make a slideshow from them that can play successfully.
Convert Video File Format using VLC Media Player
Have you looked in the Visual Effects tab up top in Movie Maker? There are a bunch of effects, at least 1 or 2 of the is Black & White.