i hope i can explain this right... is there any way to cut out just a certain area of my video clip as the shape of a circle? or can i reshape my video from a rectangle to a circle? i hope that sounds right

Well, there's no doubt it can be done. The real question is how to do it. And that will depend entirely on what s/w you are using and/or have available.

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I'm not young enough to know everything!

im using adobe premiere pro 1.5, i also have vegas, is it easier in there?

In PPro you can Create a graphic mask (maybe a vlack cirle ona white background - or it might be the other way around) and then drop that on a layer above yoru video clip. Apply a screen key effect (I think) and that will effectively punch a hole in your clip. You should be able to do what you want. There's a few of the keying effects that you can play with like that.

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I'm not young enough to know everything!

import ur clip in premiere, then in the title, make a circle which is white color, make it as big as u want, then save it, put that circle mask on top of ur clip, then, go to the keying folder, u will see a key called tracke matte, put that key on the clip of ur video, the go in the effects properties, and in the track matte properties, make the matte to which ever layer ur circle mask is in, and make the circle mask layer invisible by clicking the eye ball, i hope that helps.

You could work with PSD files and have a transparent center. Then resize the video clip and crop areas out.