Hmm.. well.. Microsoft's technique is this. Windows should be able to run "every" other program. But other OSs shouldn't run any of its programs ("copyright"/ License blah blah)..
I've used Windows Movie Maker that comes along with Windows XP.. Tis pretty good..
Adobe Premiere is the BEST, as people has told great things abt it,.. thou i myself havent used it..
http://www.adobe.com/products/tryadobe/main.jsp
Ulead VideoStudio
http://www.ulead.com/vs/trial.htm
Virtual...