If you have just discovered that these two applications are no longer working or availabe in the Windows 7 world DONT PANIC.  These tools are very important in the education arena as they are great concept developers for helping people to move on to more powerful software.  Photostory is an educators dream bit of software and Windows movie maker is a great intro to track based editing and can also be used for animation.  The new Windows Essential Movie maker is a dumbed down bit of rubbish.

With the advent of Windows 7 the Vista download of Photostory no longer works.. the solution? Look for the XP version.

or click here

The same trick works for Movie Maker as the 2.1 version for XP is still available…

UPDATE

As you can see from the comments there appears to be some issues around this and some people are reporting problems.  After some playing with different setups I think that this trick WORKS with Windows 7 x64 but does NOT WORK with x32 bit versions of Windows 7.  If anyone can confirm or deny this let me know.

An alternative installation of Photostory involved the use of XP mode and again this does work but you need to at least have Windows 7 Professional or above.

UPDATE 2

It looks like the OS check has now been dropped on the latest version I down loaded.