Is Windows Movie Maker compatible with SketchUp?

What do you mean by compatible?

SketchUp 8 is so old I don’t remember what the details are regarding export of animations with the free version. If it doesn’t have an animation export option, you’ll need to make a screen capture of the animation or export a series of images and combine them. They could be combined in Move Maker if you need to go that route.

You could just upgrade to SU2015 pro and export animations. There are better options for exporting them than there were in the SU8 days, anyhow.