compressor/editor: best against cost

[MickyFinn]

TOTAL NEWBIE:

MAGIX@divx site, will it do the trick versus the formats and hardware???:

AMD Duron 950Mhz., 512Mgs. SDRAM, SB Audigy Gamer w/1394, Matrox G550-32Mgs. DDR, Canon ZR-20 (dv), Plextor CD-RW w/Roxio 5.0 Platinum, and WinMillenium OS.

Edit: VHS, MPEG, AVI, DV. Can someone answer the question of whether the above compressor/editor can be utilized with the listed hardware/software?

WHAT IS NEEDED IS A "ONE FITS ALL, FOR A NEWBIE," against the listed hardware and software (particularly the OS).

THANKS, and HAPPY HOLIDAYS TO ALL.
MickyFinn,

THANKS TO ADICOTO: The redirect to doom9 gave me the definition page , all of which are downloadable, so the learning curve against specialized terminology is going to be greatly reduced--to my benefit. Now, before I go into the expenditure portions of this "new" endeavor, I'll at least know what and how something should be approached.
MickyFinn,