Yeah, I try to do all the fancy stuff on my PC but I've got that strange 4:3 limitation when recorded on the Toshiba that I haven't sorted out yet. I use Pinnacle Studio 9 which is pretty powerful, fairly easy to use and if you compare it to Adobe Premiere, cheap at about �60. I think there are cheaper ones out there, even a free one in WinXP.
If/when I get a bonus, I'm off to buy a nice new hard disk for my PC, then I can rip straight to disk without dropping frames all over the place, then my Toshiba will just be a (good) VCR!