I'm looking into video editing myself, just got today a new Sony DCR-TRV120 (awesome! I highly recommend it to anyone interested in digital video) and I'm currently on the lookout for a good Firewire card and a new, big HD.
At this point, I already have Premiere 5.0 (5.1, too), as well as the Ulead and MGI programs. I prefer SoundForge for audio but it would be a good idea if I'd download CoolEdit as well, just to be sure.
Now, what I'm trying to do can be roughly divided in two: creating my own material and saving it on CD, and backing up some Laserdisc and videocasette movies which aren't going to be put on DVD in a good while.
I have been thinking about subtitles and menus, too. I can use the camcorder's features for subtitles. Another possibility would be to mix slates created in Illustrator or Photoshop with the actual footage (transparencies, for a professional look). Hard work, but still possible. The alternative would be buying a standalone character generator and video mixer, but we're already talking about a small studio budget.
I've been thinking so far about saving my work not as VCD, but DiVX. I could thus possibly keep movies on one disc, and with better quality. But I don't have enough knowledge here.
This brings me to a final point. I suggest that, given the growing interest in audio and video editing, there should be a separate forum just for this topic. Otherwise, information is just too scattered all over the place, and tracing it is extremely hard.