You can use www.fraps.com to record the video footage.
When recording footage, make sure to use a seperate hard drive with a firewire connection (not usb). Make sure the drive is de-fragged for best performance.
Editors:
Adobe Premiere (my choice - works well with other Adobe products like Photoshop, After Effects)
Avid (Top End - PC)
Final Cut Pro (Top end - Mac)
Others:
Movie Maker
Pinnacle Studio
Etc.
Effects:
Adobe After Effects or you can use the editors which usually come with preset effects.
Hope that helps.