I use windows MovieMaker, for cutting large videos, and to combine small animation footages with music. It outputs to wvm in some standard sizes, and works well. Avi's are uncompressed, a real nightmare.

Pinnacle Videospin is second, as it can handle other formats. I just found it, so it might promote to #1.

Wax, from http://www.debugmode.com/ , comes third at this moment. It handles multiple videotracks, I just haven't used it that much yet. Looks great though, and can run as a plugin too. Deals with Avi.

Go http://www.prvsoft.com/ for great converters and other free tools, love them.

have fun.

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Usually I'm wrong. But to be effective and efficient, I don't need to be correct or accurate.

visit www.aRtBeeWeb.nl (works) or Missing Manuals (tutorials & reviews) - both need an update though