Software for making videos

And Windows comes with Movie Maker which, while not as good, is easy to learn, comes with a range of fun effects and transitions, and can be used with a simple DVD authoring package (Sonic, or the kind that usually comes with a burner) to make movies that you can play at home in your DVD player. Check your machine, you may already have it.
 
For the AVI format, use VirtualDub/-Mod. If you are combining MPEG files, womble is good (direct stream copy).
 
Thanks for all the suggestions.

I was also thinking of making a slide show, preferably with transitions with various effects and variable timing, with photographs and adding sound clips. I would then like to burn the whole thing to DVD. Is this possible in Movie Maker or any other application?