The following are some of the options:
1. Windows movimaker does the job, wiht good transitions in between, and add music to your movei. So does the Adobe Premier Elements
2. Google Picasa does it, though without music.
3. there is a sofware called muvee producer or muvee maker or somthing, it was given free with pcw last month.....it would do....
4. if you have any of the Sony's camera, either digicam or handy cam, they have good software bundled with it.
5.I think Nero does it.
all are free and easy to use.