Question: What kind of video editing software do you use?

Answer: I bought a Mac so I'm using Imovie.  However, before that I was using Pinnacle and it worked just fine for me on my PC.  I was able to trim clips, add transitions, do voiceovers, speed up parts, etc.  The only thing I really felt it was lacking was motion titles, I know they are available for separate purchase, but don't come with it.  So, if you have a PC I would say giving Pinnacle a try might be a good idea.

Question: I'm just starting out, what tools should I buy?

Answer: It does depend on what you will be doing, but some good basics to have are
A good paper trimmer
A sharp pair of scissors
Great adhesive - 1 tape runner, and 1 liquid adhesive
Variety packs of cardstock .  I think this is a must because you never know when you might want a certain color.  If you make cards I recommend buying the 8 1/2 by 11 sized sheets.  If you scrapbook I recommend buying 12 by 12.  I like the Recollections brand cardstock at Michael's for most uses.  It cuts really well in my diecutting machines.  However, for card bases you might like something more thick and sturdy.

If you are going to be making cards you should have a bone folder.  They are very affordable and help you get a tight crease on your folds.

One thing I want to say is that many of the people who blog and make Youtube videos have been crafting for years, so it isn't realistic to expect to have all the tools and supplies they have.  I recommend building your collection slowly while you find out what you like.  There is no sense buying 20 stamp sets with images and then finding out you hate stamping.  Buy one thing at a time and take the time to learn to use it.  Everyone likes different inks, papers, etc.
To see some of my favorite products check out this page.