Movie Maker 2 can also handle mpeg and AVI formats. But It has a serious down side in my opinion. Its horribly slow in generating the final file and the file when generated to very huge. But the quality is good though. I had been using VCD cutter and it is simple. It doest not perform its job well with some codecs and you have to pay for it. But It is pretty fast and the final files are not as bulky as those produces using Movie Maker. I have also used Quick Time Pro but it works only with .mov files. But its is paid. Pretty simple to use but I had a pretty difficult time with it trying to get what I wanted from it.
Free Alternatives: Part 2