Keep in mind that YouTube doesn't accept .wmv files. If you're making it from Windows Movie Maker, when you are saving it to your computer, click either save movie, or for computer. Do NOT click save project, this turns it into a work in progress and a .wmv file.
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yes you can watch it on youtube
yes you can see their movie in youtube
To be able to use the custom thumbnail option on YouTube, your account must be in good standing. Also, you may have to be a YouTube partner to be able to enable the feature (but this might change in the future). Also make sure that your YouTube video has finished uploading and processing to make sure that the thumbnails for your video were uploaded and saved correctly.
YouTube
you go to youtube.