Let’s take a look at Movie Maker 8.1, and we’ll tell you how the first 100 of you can unlock the app for $0 in a special Windows Phone Central offer!

Late last night, a new app named ‘Movie Maker 8.1’ landed on the Windows Phone Store for Windows Phone 8.1 devices running the Preview for Developers . The third-party app runs for a $1.49 with a free trial and is the first to exploit new API features in Windows Phone 8.1 that allows direct editing of videos on a user’s phone. Movie Maker 8.1 is also a universal app, meaning once you buy it you’ll be able to download and use the corresponding Windows 8.1 app too. The Windows 8.1 app is expected to hit the Store soon.

Movie Maker 8.1 is a full-featured video editing app, and even for its initial release, sports a lot of options for users. What’s more, Venetasoft (who made Instagraph, the first Instagram app for Windows Phone), has lots of plans for Movie Maker 8.1, including optimization updates and new transition features. Here’s what Movie Maker 8.1 can do today:

Movie Maker 8.1 (1.1.2.2)

Allows the user to compose a movie using all kinds of video, images and music files supported by Windows Phone 8.1

All the clips and tracks can be copied, moved, deleted, and duplicated (same for the audio tracks)

Volume can be controlled on single clips and tracks

When an image is added, you can set the duration on the movie and you can apply one of the awesome Nokia filters

"MP3 extractor" feature: a user can load a YouTube video previously downloaded, extract the soundtrack and use it as the movie background of exported

All the work is done by the app; no internet connection is required.

The final movie is saved as mp4 on a folder chosen by the user (SD card too).

Easily trim, crop and split clips

Set clip volume level

Copy, paste and delete clips at any position

Use simple playback controls to review clips

Zoom able real-time preview

Slow motion effect 10X

We’ve been playing with the app for some time now, and it works quite well. For instance, we quickly jumped on the ‘slow motion’ effect, which can be tuned for 1X up to 10X speeds. Needless to say, it’s a lot of fun.

The app does have a few bugs early on, including an error message about a file being “locked” and unable to be saved. However, that error does not really block anything and is more of a nuisance than anything (we’re told it’ll be fixed in the next update).

Windows Phone Central giveaway! (Update: Sold out!)

We’ve teamed up with Venetasoft to give away 100 copies of this app, which will include the Windows 8.1 Universal app too. The trick is simple, but you need to act fast:

Download the app Rate the app in the Store On the main page, tap 10x where it says “Movie Maker” near the top (it may take a few tries) A dialog screen will appear Type in ‘wpcentral’

For the first 100 users who do this, you just saved yourself $1.49 , and you have a free app, including the forthcoming Windows 8.1 RT version.

Pick up Movie Maker 8.1 here in the Store and let us know below in comments what you think! $1.49 with a free trial. Windows Phone 8.1 only.

Remember, there are a lot more features coming, including transitions and hardware acceleration (when OEMs release Windows Phone 8.1 with new firmware).