I have a really cool camera from Canon. It is a camera for pictures but it also records videos. It is a Canon PowerShot SD750 7.1 Megapixels
I love it. I bought a 4 Gig SD card for it and the SD card fits right into my laptop to upload my videos.
Making small movies is great on it because you don't have to mess with the MINI DV tapes, and the quality of video is pretty good!
Apple's iMovie is great for doing video.
It has drawbacks but Windows Movie Maker is allright for simple stuff.
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