Hey, say what you will about Movie Maker 2, but you can't argue with free
I use it with students all the time. It's perfect for basic video editing. Low learning curve and quick to produce a useable video.
Another excellent (and free) Microsoft product is Photo Story 3. If you haven't seen this yet, it's a must download. So easy to quickly take photos or .wmv files and make a story complete with music, titles, effects, transitions, etc. Just Google it for the download link.
BTW, if you haven't seen them yet, Google MM3 or Windows Vista Movie Maker to see some really interesting details about the new version. Direct to DVD, MPEG-2 & MPEG-4 rendering, and HD DVD WMV format. It'll give the likes of Pinnacle and Ulead a run for their money on entry level video editors.
"Trust no one" --Deepthroat (X-Files)