PC Mechanic has produced a good rundown of some entry level video editing software. While they've capped the cash limit to $100, there are some excellent free programs listed, such as VirtualDub and Jahshaka Effects.
"Video editing is taking the world by storm. Everywhere you look, you see videos made by average people. If you just bought a DV camcorder and want to show the world or your family what it's seeing, you need video editing software. It's possible some software was included with the camcorder, but you might want to take a look at the options before jumping in."
Be warned though, free software doesn't always translate in to simple to use software.