Nero has a marketing strategy that focuses on being a one-stop solution for a wide variety of tasks, and getting the widest possible exposure. Buy a burner, for instance, and chances are you'll get some version of Nero with it. I would guess they rely on many folks buying upgrade packages. It has become ubiquitous.
The core of it, the Burning Rom, is fine. Although one should not use it for DVD-Video. It does not implement 32k gaps, meaning if there's one bad sector, you lose both the IFOs (DVD navigation) and the IFO backups (BUPs). So I have a gripe with that too.

Most of the functions in Nero suites these days put me in mind of the expression: "jack-of-all-trades, master of none".
You obviously are ready for, and NEED, better video solutions. I should think that you might consider something like Ulead DVD Movie Factory, perhaps even Ulead Video Studio. Depending how far you want to go, after some experience, prosumer software will be a possibility, e.g. Vegas or Vegas Movie Studio. Look in the tool sections at videohelp.
With the willingness to put some real effort into it, you'll find that freeware can be just as good for many specific purposes. Typically, they are written by hobbyists dissatisfied with existing apps, they tend to be single-purpose and have small footprints. (Not like Nero in that respect!

Stay away from Pinnacle stuff as well like Studio 7/8/9, they're hugely bloated and buggy.) If you're really interested, there's frameserving with Avisynth, which takes considerable skill and knowledge. But it's free, and you wouldn't believe the vast variety of video filters available for it, written by, yes, enthusiasts. Most of those filters are on a par with professional apps.
Do yourself a favor and join up at videohelp and ask your questions there. You'll find there's a guru for every seemingly obscure process you can think of. Capturing and manipulating cam footage is not my strongest point. Good luck.
