This post will help get you started making dreams.
How to create Dreams (links)To get video to loop with Windows movie maker is easy. You have to have a transition that fades from one segment to the next.
Here's an easy way to do a 10 second clip...take your video clip and cut it into 2 equal parts and name the first one #2 and the second one # 1. Move those into movie maker and choose about 2 seconds or so of fade from #1 to #2. The longer the fade, the less notice able the transition will be.
You will end up with a clip that starts at where you cut your video and fades from the end to the beginning and ends up at where you cut the video. If you have a lot of motion in the video you will need to keep the frame rate around 29 or so. You can get by with 25 fps if you have a slow moving video. On frame rates, try to stay with the original rate if possible but if you notice a jump, you may be too low.
If you notice a jump or skip in most dreams posted in the gallery you may have a codec issue causing them to pause when looping.
One thing to concider with using Windows Movie Maker, it tends to degrade the quality a little.
For that, and other reasons, I use Adobe After Effects for editing and TMPGEnc 4 XPress for encoding.
Lastly, I've done a few Dreams so if you get stumped and need help, don't be afraid to ask for assistance. You can always PM (private message) me.
Welcome to the Community.