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.
  2. if its not down to price, the best of the best..
    Sony vegas pro
    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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