I'm going to have to agree with Nikosony on this in regards to Pinnacle and Adobe Elements. Windows Movie Maker will really limit your creative possibilities.
I, personally, would recommend Premiere Elements. Some swear by one or the other but we love Adobe at my workplace.
Also, consider changing your file format to MOV or AVI. You can take advantage of what are called Alpha Channels (layering an image/vid over another) and Pinnacle has similar offerings as well.
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Michael Frederick
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