Following on from another post, have you used Windows Movie Maker 2? It will do all the editing you want but I'm not certain if it can save or export the finished file as DivX. If that doesn't do what you are looking for then download some of the many 30 day trial versions of the more expensive software, most are fully functional and will give you an idea of what each can do. Then after having used a few of them, you can make up your mind about which one is best. Try and avoid using VOB files right until the end when you go to burn a final DVD, use DV AVI, usually the Microsoft version, which seems to be very popular at present. It gives the best picture quality with little compression.

__________________
Better than a poke in the eye with a pointy stick any day...