Video Editing software

I am looking for some good video editing software that will allow me to do things like edit HD video, add my own audio to a video and add an image or even an animated image to the video. I was also wondering if there was anyway to encode 2 videos into 1 file and have them play in the same window at the same time, similar to what you would see if you used picture in picture on a TV.

Thanks for your help!
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More about video editing software
  1. I use Pinnacle Studio 14. $50 from Newegg.
    I used it for 14 videos I edited and uploaded to Youtube.

    Here's an example of two (actually 3) playing at the same time.

    http://www.youtube.com/watch?v=aJBzQHKFN10
  2. if its not down to price, the best of the best..
    Sony vegas pro
    and
    Adobe after effects
    are the perfect combination for a good video editing workflow.. and yes you can very very easily put 2 videos side by side in either of these softwares
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