I use Windows Movie Maker 2.
Here is a sample of what I can do with it. (Most of my other videos were done in windows movie maker 2 also) www.turkeyscore.com/Videos/nobody.wmv
I checked out your 'video'.
Very nicely done! I like the soundtrack too.
1) Does it allow transitions? I didn't notice any in the clip, before I had to close it after about 1 1/2 minutes.
2) Can it be saved as a VCD compliant mpg?
She wants to creates VCDs/SVCDs for playback on home DVD players.