As suggested, Windows Movie Maker is the simplest solution with what you already have [in Accessories...].
An alternative to using VLC, I prefer "Media Player Classic"... which can also save frames to a file. (Media Player Classic is my main video player... instead of using WMP.)
[command-line] MPlayer can extract frames from video into a file... which can be used in a script.
For something fancier than a media player...
try Virtualdub [which can import MPEG]... which can copy a frame to the clipboard.
For general screen-captures, including these video layers, try SnagIt.
I wonder if its possible for Paint Shop Pro to do the capture
by setting your video-card hardware-acceleration (in Display Properties->Settings->Advanced->Troubleshoot) to "None"...
possibly turning off DirectX features.