All 3 software will do what you want but have slightly different emphasis. I have the videostudio 9, mf4 basic and pictureshow4 but use Pinnacles studio 9 plus ( and Liquid edition: a different genre of video editing software) more often ( familiarity ) for editing.
I am confident though that you will enjoy playing with Uleads products ( No ....honest I do not work for them
I feel that the dvd movie factory4 will allow you capture you video clips ( and do some little editing, create slide show from stills with music background and then " author" a dvd with each of these elements as different chapters. Taking the best bits off the tape and joining them with transitions sounds suspiciously like full blown editing to me ! (LOL)
Changing to Pal may produce some unexpected results. keep to ntsc. most dvd players ( and tv sets here) will playback ntsc material on pal systems without breaking into a sweat.
Ulead also make software called movie workshop express 2 . While primarily a dvd authoring program it is simple enough to learn to do some what you want and more but costs a bit more. Confusingly, Ulead also make a product called cd and dvd pictureshow 4 ,also very capable although the emphasis is on bringing your pictures to life and capturinr trimming videos and turnig out video cd or dvds. The most simple answer is to download the full 30 day demos and try each product . They are generally all affordable and have varying levels of complexity, cd and dvd picture show and mf4 being easier video studio 9 a mixed bag and movie workshop express a bit more complex for more intricate projects . I have actually used all of them and find the end results very pleasing
good luck