I generally use either Video Impression (came free with my digital camera) or Nero Vision Express (came with my DVD burner). Neither are any good at video manipulation (changing speed, adding effects, etc) but they do allow 2 tracks of audio and you can whack in pretty transition effects and the like. For video effects I generally work frame by frame in Corel (it can import an AVI and split it into its constituent frames, each able to be worked on with Corel's graphics tools). For audio I use NCH WavePad, Audacity (like colclough) and Krystal, all free on the web. WavePad is good for recording (from a synth or whatever), Audacity has excellent sound processing tools, and Krystal has a fantastic interface which closely resembles a proper mixing desk. Like Lynn22, I prefer to build my audio tracks separate from the video.