I have been asked several times now what software I use for my video editing. My core software is Adobe Master Collection CS4 along with Vegas Pro. If you want something a lot cheaper, as in free, I would recommend, Windows Movie Maker and Cinegobs for keying effects.
I get asked what software do I use or recommend. Well this is some of the FREE software that I use:
www.imgburn.com - Well Vista and XP did not come with a way to burn ISO files, so this software will help you out and it works! Burning ISO files is native in the upcoming Windows 7.