Ok, first things I had to get for cutting the movies and screen caps was some tools, so I browse through some video forums trying to get a general idea of what's the best tools to use with the minimal fuss!!
I decided to use:
http://www.boilsoft.com/videosplitter/ Cost: $24.95 and
http://www.frame-shots.com/ Cost: $30
This brings my total cost so far to $284.95