A good piece of software is Adobe Premiere Elements 2.0, it will cover all your needs from capture, to editing to final output either onto DVD or back to tape. It has multiple video and audio tracks, they can be worked on separately, so you can lay pictures over different sound or vice versa. Lots of effects and transitions and good integration with Adobes other software. I don't know what price it is in the States but over here in Europe it retails for about 60 pounds Sterling or just under 90 Euros, so it would fall well within your budget. There are other pieces of software so give them a look aswell. I would recommend downloading a 30 day trial of the software and see which one you like best and if it works alright on your computer set up then go for that one.
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