As I mentioned, personally I have been using Cyberlink Power Director. Another suggestion you may want to look at is NCH software it's called Video Pad.
http://www.nchsoftware.com/videopad/index.htmlI have not used it but looks like it may work better with your system?
some supported files are:
Supported Input Formats
Import Video
avi, mpeg, wmv, divX, Xvid, mpeg1, mpeg2, mpeg4, mp4, mov, vob, ogm, .3gp, H.264, RM and more
Import Images
bmp, gif, jpg, jpeg, png, tif, tiff, psd, tga, pcx and more
Import Audio
wav, mp3, mp2, mpga, m4a, ogg, avi, mid, flac, aac, wma, au, aiff, ogg, raw, dvf, vox, cda and more
Works on Windows 7, XP and Vista
For earlier versions please see Windows 98/ME and Windows 2000