Video editing software?

There are some very good but free software packages available, look at OpenShot Video Editor. It is pretty powerful and has transitions and effects, multi-track, etc, all the things you would expect in a high quality video editing suite. It is open source so if you don't like it, you haven't spent anything and can simply un-install it. It's all up on what you want to do. For a simple video, Vegas is decent, but if you want to get into more effects, I'd go with Premiere Pro and After Effects. If you were thinking of going into movie making as a career, I'd go with Final Cut Pro.