Although Windows ships with the free Windows Movie Maker, it's fairly limited and not really suitable for anything but the basic video editing. The snag is, the next stage up means that you really need to know what you're doing. Apple's Final Cut Express or Pinnacle Studio are both home video editing packages, but really suited towards semi-professionals, perhaps who want to produce wedding videos on behalf of their clients.
Pinnacle VideoSpin 1.1 is a completely free video editor that enables you to do all basics with your home movies. Cut, edit and add various transitional effects. Add your own audio track, sounds and then get ready to export to disc or the web. It already has builtin support to upload your video to a streaming site such as YouTube, so you don't need to worry about hosting.
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