I have been using Windows Live Movie Maker for a while now. It was free and just works. You can see an example of the result here in the Uploads window. Every one of these 49 movies were made with the beta Movie Maker program. I just bought a pricy competitor’s program to see if I could get better results and the experience has been horrible. I’m back to using Movie Maker.
I am anxious to try out this new version. There are some features I’ve always wanted like putting a still pic over a less than good part of a video but not losing the sound.