Tom’s Hardware Guide Video: Making Digital Home Movies, Part 1 – Software. Finally a decent guide to all the software you need for video editing.
I agree with them that Sony Vegas (formerly Sonicfoundry, I got mine as Video Explosion Deluxe), but it is all the same package is very nice.
They have a bunch of other good recommendations including:
* Sony’s Soundforge for audio editing
* Blufftitler for titles
* Digital Juice’s Jumppacks for animated backgrounds
* Wondertouch’s ParticleIllusion for special effects
* Serious Magic’s Visual Communicator for chroma keying