The software i use is completely free.
To record video fragments, with a max of 15 sec (enough to make one scenery, and you can record endless fragments) i used GameCam
CLick hereI edited the raw material completely with Photbucket, using the remix tool. It lets you add text and music, cut, copy and paste fragments of film and even add photo's.
Link to my albumWatching your clip, was great, only thing is, watching dancing avatars isnt really exciting for 4 minutes, haha. So maybe next time, you'd use a little less time, try to tell a story and add some text!
Let me hear when you launch part two!
Gurbo