Hi Massa,
i make my videos with windows movie maker, but I agree with Ramshackles there is much more exciting software out there (I have seen a program with spectacular effects, but I have to ask the name again of that, I just can't remember anymore, I will ask again). The effects in windows media are o.k., not very original but you can combine up to six of these effects, just take more than one at a time and sometimes something original comes out of that..
Windows movie maker at least is easy to use (drag and drop, cut and copy etc...) and if you ask me any digital camera will do (I don't think it is very important to invest a lot in a very good camera,most people watch the film on a little youtube screen and I think when uploading to you tube the quality gets downsized or fitted to a certain amount of pixels. having a very high resolution may be beautiful when watching it home at your computer but also makes the process (the copying and pasting in windows media player and also the uploading etc.) slow, sometimes extremely slow and costs loads of memory....unless you have a supersonic mega computer
good luck with making video to your music, i find it great fun to be looking for footage and short film clips that fit a song or a sound!