Good video editing software

I recently received a camera that takes stills and short movies. I can download the movie to the computer (PC – Windows XP) as an MPEG. How can I edit it? Is there a free or low cost editor that you recommend?

Thank you so much!

AviDemux is free and should be able to handle mpeg files.

You might want to read the entry at the AviDemux wiki on cutting mpeg files with it: