there are a lot of good freeware programs. some are actually better in many respects than similar commercial applications. some are not as helpful--not because theyre badly written--more because theyre marketing devices to encourage purchase of a nonfree version. im not saying that's bad...just be aware of that possibility.
virtualdub 1.5.10 is a gnu licensed application so it really is free. i havent used it myself but it looks good. note that you may need to download some components (filters) that might normally be included in a commercial release. also it will read but not write mpegs...its mainly for working with the avi format.