Windows Movie Maker will do what you are looking for, it just depends on how you plan to 'give' the finished videos to your friends. If it is over the internet, then a wmv will do fine and WMM will allow you to do that but if you want to put it on DVD (the quality won't be good - if shot using a webcam compared to an actual digital camcorder) then you will need other software such as Pinnacle Studio or Adobe Premiere Elements 4 which costs about £60.
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