90% of application crashes on Windows are the result of bad video drivers. Go to the Nvidia website and download the latest drivers for your card and operating system. Avoid using the ones available from Windows Update. Those are for corporate office computers.
I can't give you any tips on free editing software. Movie Maker on Windows and iMovie on Mac are probably as good as you're going to get. If you decide to spend some money and get a decent editor, I highly recommend Sony Vegas (either Pro or Movie Studio editions). For a novice, the work flow is far superior to Premier, Final Cut, or Avid.
The key to creating good footage that doesn't need to be "fixed in editing" is having sufficient light on the subject. Cheap cameras will not work decently in normal room light. In a decent sized room, you need at least 300-400 watts of direct light or 600-800 watts of "bounced" light to give low-end cameras enough to work with. Make sure the light sources are all the same color temperature too. Do not mix incandescent, halogen, and florescent lights together. If you are also using natural sunlight to light the scene, you'll need to use "daylight" bulbs in the 5000 to 6000 degrees Kelvin range. These are easiest to find among florescent bulbs. Most manufacturers include the color temperature on the packaging these days. you can get perfectly useable "made in china" studio lighting kits on eBay for around 60 bucks that include a couple of stands, light fixtures, and either unbrellas or soft boxes.
Unless you are making a zombie movie, avoid putting the light sources near the floor pointing up. Slightly above head height pointing down will work pretty well. If you have enough individual sources, you can put one or two about chest height as well.
Most importantly, do some experimental shooting with different lighting techniques before you start shooting for real. Subtle changes in brightness and placement can have a large impact.
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