Read the thread I started in FORUM ANNOUNCEMENTS called 'Free Stuff', there you will find a long list of free software (you have to pay for one). In amongst that list you will find a video editor, click on the link and download it to see if it's any good.
What kind of clips are you using? Did you capture them from a camcorder using Firewire or USB? You should use Firewire if available as this gives the highest video quality. If you downloaded clips from the internet or from a mobile phone, then they are low quality to start with and you can't do anything to improve them. WMM has a setting that captures clips separately, off the top of my head I can't remember how to switch it off, look in the settings to see if you can find it and capture your video in one piece.
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Better than a poke in the eye with a pointy stick any day...
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