Final cut, Avid, Premiere and Pinnacle Edition are all good and Higher end editing platforms. They are also expensive, cost as much as the camera price range you specified. If your just making films of you and your friends for fun, try pinnacle studio 8. It's probably the best of the "cheap" editors and it has it's quirks like all the rest. This way you can just edit and not have to learn a software. I think it would be though to get a used TRV 900 for $700, there just aren't many out there to be had. In that range you'll probably have to get a 1 ccd camera. This is not nessacarly a bad thing though. Just remember your goals with what your shooting. Good lighting, Angle, and exposure matter more then what features the camera has.
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