It will be used for my church and personal use.
Windows Movie Maker is the best free video editor but if you have a very small budget you can buy the roxio video lab editor from 25$ to 50$ off ebay.
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If you're working with AVI files, I recommend WAX 2.0. It has a lot of really cool plugins and a fairly intuitive interface. And it costs nothing! If you want to convert the files to MPEG-2 for DVD use, check out mencoder. It was originally for Linux/Unix systems but it has been ported over to Windows. It's command line driven but there are various GUI's made for it that will help you do the conversion.
Windows movie maker :( I have adobe premiere elements 7, it costs about $70 though and it's amazing.