are you using a PC? Personally i find it a pain to edit movies on a PC. Thats why i originally moved to a mac. Apple computers come with excellent software called iLife. I can edit a video and burn it to a DVD that will play in any DVD player without having to purchase extra software. (this is the reason apple computers cost more, they come with software... that works!)
I know there are some decent video editing applications out there but you may have to increase your budget to 300$.