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. http://fixounet.free.fr/avidemux/

You might want to read the entry at the AviDemux wiki on cutting mpeg files with it: http://www.avidemux.org/admWiki/index.php?title=Cutting_MPEG_files