If you have Windows XP, you already have basic video editing software. Do a search on your hard drive for "Windows Movie Maker.'
Windows Movie Maker is veeery basic though. For $100, you can get Pinnacle Studio 9 Plus. This is by far the best video editing software that I have used in this price range.
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AMD Sempron 2600+ (Socket 754; 1.6GHz)
Chaintech VNF3-250
768MB Crucial PC2100 (I know, I really need PC3200 :()
ATI Radeon 9200
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