The video is 4 minutes long. Space/memory is not an issue.
It would save up to 10% and get stuck, then after downloading what appeared to be a shady looking codec package, it went up to 13%, and stopped again. So I uninstalled the old package and then it wouldn't even recognize avi video formats. Which led to me downloading the codec package linked above. And now it will play the formats again, but it will not even move up from 0% on the progress bar when trying to save movie file.
Hardware is AMD FX 6100 six-core cpu at 3.3ghz, 8gig ram, and AMD Radeon hd 7900 gpu.
All drivers are up to date.
Note: My fraps videos save to my 1tb hdd and my windows movie maker runs on my ssd. That shouldn't make a difference though because my old pc operates the same way and windows movie maker works fine with that setup.