i got windows xp computer and have been having problem with windows movie maker. so a lot of time when i make a movie it stops working after a while. so i have to restore my computer to original factory condition using the recovery cd that came with the computer. does doing this too often can be damaging to the computer? thank you.

You can't do any significant damage, but it would make sense to try and solve the problem.
Make sure you have the latest version of movie maker and your graphics drivers.
Look in event viewer and see if there are any entries related to this problem.

I would add, that if your movie maker program is causing problems, either upgrade the PC with more RAM, or change your video editing software.

If your PC stops working, reboot it a couple of times. Although, restoring it won't cause any harm, it seems a bit drastic to have to keep doing it.

Do you have any video card software like Nvidia Control Panel?

If you do you can change a setting to pick whether you would like Performance, Mixture of Quality...

When I watch movies, edit movies or play games I put the setting on Performance

When I Show pictures or Im doing any type of picture editing I use quality