I'd recommend downloading a free trial of one of the popular cheap editing packages, just to see whether it's the hardware or the woftware that's causing the problem.
Try Premiere Elements:
http://www.adobe.co.uk/products/trya...emiereelements
(I hope you're on Broadband though - it's 515MB). You have to be using Windows XP, and seeing as you mentioned serive pack 3, i'm not sure if you are.
Or maybe Pinnacle Studio: http://www.pinnaclesys.com/docloader_n.asp?templ=10&doclink=/WebVideo/studioavdvdeluxeversion9/English(US)/doc/Download_StudioPLUS_US.htm&Product_ID=1501&Langue_ ID=7&loc=doc173&division_id=
Oh, and good luck with the babba... A friend of mine is due to give birth today, but there's no sign of the little one turning up on time
