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Virtualdub rules, but I don't think you can add images with it....but I could be wrong.
To watermark & add images, I use premier...it's really easy to do, but other than that I really don't like the program...too much of a resource hog. Just make a bmp in photoshop and import it into premier, then drag it to the timeline. It's better to work with raw AVI when doing this too, but it can get tricky because of the 2 gig filesize limit for AVIs.
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