Windows Movie Maker supports export to WMV format (Windows Media Video) so it seems like the obvious choice for .msdvd to .wmv conversion. It is unlikely that you can achieve this using any other software, considering .msdvd files are from Movie Maker.
Convert Microsoft Windows DVD Maker project to Windows Media Video.
We found one software available in the database for this conversion.
Microsoft Windows software - convert msdvd to wmv on Windows
A video editing software distributed with Microsoft Windows
Convert from msdvd file format
The table with program actions contains information about what each program is capable of doing with their files. This may be a good pointer for further searches for certain file conversions and help you find the converter you are looking for if our search result is insufficient for you. However, it is far from perfect and may sometimes show results which are not really usable because of the nature of the software handles the files. So a conversion that appears as possible, just because of matched actions, may in fact not be possible.