Just got a new Sony HC40E. Looking to get some decent editing software, what shall I get?

I am after something easy to use, easy to edit into a decent looking video. Looking to spend £50ish max. Just want to do basic stuff, maybe add sound, have surround sound on, easy "cut and paste", basic effects and write to video CD/DVD or back to the DV tape.

Downloaded a trial of Ulead but found the editing very hard.

Also, what is the difference between a dvd and video CD?