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You can not improve it's quality in the manner you wish.
Is it possible to improve the quality at all?
Unfortunately that's the downside of a lossy codec. The information of the source is lost in order to get the file size down. Theoretically I suppose some bright boffin may come up with some kind of software package to interpolate resolution back into a file that's been scaled up, but I'm not aware of one at this point.
It would be ugly, but you may wish to blur the image slightly (0.5-1 pixel) to break up the artifacts, but it's only going to mask the inherent shortcomings of the file rather than improve it.
Nowadays there are software packages that claim to scale up still images without noticeable loss of quality (at a price). Haven't seen such a package for video yet.
If all else fails, you might be able to convert the WMV to an image sequence, apply high-quality still-image upscaling fairly efficiently using an Action, and then import the upscaled sequence back into NLE for further editing.