i use Sony Vegas Pro 9c as a video editing software, and its extremly easy to work with, does great quality and alot of functions but not too complicated, good for beginners but does not limit you.
strongly recommend vegas pro.
Its possible to get it for free, as long as you know where to look

i got mine for free
as for the capturecard i've got no clue, i use the infamous Hauppauge HD PVR, best there is