I use Monkeyjam for frame capture and Windows Movie Maker for editing. As for the camera question, however, I use a Logitech C300. It only cost me about €30 and was well worth it. It has an adjustable ring and the quality is great. I would recommend you check that one out.
-JTP
EDIT: Oh, you have a Mac... sorry, didn't know. For editing, try iMovie. It's free and I have heard it's easy and good. For frame capture, try framebyframe. This is also free and again, from what I've heard it's good.
Last edited by J.TProductions (December 29, 2010 (01:58pm))