Ok I am putting together my own small business, by small I mean only me. I will be creating highlight films for high school athletes and I need help determining all the software and hardware I will need. Please give me you advice on what I need and I hope this is being posted in the right forum, if not please move it mods.

1) Editing Software:
I have reviewed nearly all editing software out there and I believe that the simple Adobe Premiere Elements 3.0 will work for me. When editing film all I have to do is cut and piece together the films basically. There is no need for really fancy transitions. The biggest edit will be to pause the video and highlight certain individuals. I can do this by simply taking a pic of the video and editing it with Photo Shop.

If you feel that there is a better program for the job than Adobe's PE 3.0 please tell. Keep in mind I don't need a high priced software. But it would be nice if there was an easier way to highlight players than to go to Photo Shop every time. Please let me know if there is editing software that has this built in.
2) Hardware:
This is where I am not sure of what all I need. I have a good enough CPU for the job but what other hardware do I need to think about. My CPU has a tuner so I can send most video media to my CPU easily.

Problems that may arise and need special software:
  1. Most of my projects that get sent in will be sent in on VHS and I will be sending it back on DVD so I need to be able to generate the best quality through all the transitions: VHS to My CPU to DVD. What do I need to consider for this?
  2. I don't even know what this is called or what it is but I would like to be able to do it. You can see what I'm talking about in the link below. When you click on the link you will be taken to a highlight site and on the right there are samples of highlights. THEY DON'T work so don't click on them. But you can see in the thumbnail that the film is embedded in some template. Are these from a editing software or are they some template? What ever they are I would like to know how to do it. HERE'S THE LINK
For now these are all the questions I can come up with but if you can please help me and let me know of other things I should think of.