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Download the latest driver for the crystal eye webcam from the acer site, install the driver (will not work yet) then go to device manager and image devices, right click and scan for new hardware devices and then widnows vista will pop up saying installing the cam. Thats it. Worked for me.
Import video is only when you have recorded a video using the webcam in a particular format and not on the fly which is what you are trying to do.
Record what you want using another application and the webcam then import the video into movie maker to edit.
Alternatively, I think you need to to go the options screen and select the default audio device. Go to control pannels and see if its there and then select the webcam as the default device for MS applications.