For video editing, I've had really good luck with the AVS Video Editor software package. I think it was around $60 when I bought it, but the quality of the results has been excellent for me. Tons of different formats to save in including 1080 HD and even Blueray disc. I definately recommend it for any who enjoys making videos.http://www.avs4you.com/AVS-Video-Editor.aspx
Here's my youtube site where you can see the videos I've produced with it. There's tons of different wipes, fades, fonts, effects and transitions I haven't even used yet. Compatible with Windows 7 64 bit for those who might be concerned.http://www.youtube.com/hellshade68
Also I agree with DaveSHQ. Purchase FRAPS for screensaving is an excellent choice. I believe they are up to version 3.2.6. I also use it for the video capturing that I then edit and convert to 1080HD format. Well worth the purchase price.