I dont like movie maker.
I use Adobe Premier, its expensive but worth it. If on a mac use Final cut studio pro. Both are pretty expensive so be ready to shell out some big money for em or break the law :-P
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i go with option 2 ;P
you can also use quick time its a download but im not shure if it would work what ever though i gave it my best guese
Try Sony Vegas 8 or any other newer version. It works wonders and only costs $85.
Free: Debugmode wax
Paid: Sony vegas 9 (So worth it)
I use Cyberlink PowerDirector, and it does anything I need it to do. however, I suggest you look around BestBuy or another software outlet for a program that is under 100$.
yes if your willing to pay for it - but as free offerings go it's not that bad.