Can anyone give me a simple way to edit my footage?...

I have just bought a sony handycam DCR-SR32 with hard disk drive. quality wise its fine, & its easy to transfer footage to my PC...however, the problem lies when i try to edit that footage in either Windows Movie Maker or Adobe After Effects. The file type is 'Movie Clip'...which seems pretty much useless if i can't edit it. How do i convert or edit the file type?? surley theres an easier way around this?...

i'm getting really stressed watching 12-year old's on youtube with ther edited footage & i can't even get my footage into aftereffects....

Any help would be much Appreciated, Ed.