The overall goal of creating good multimedia video is to produce a video signal with the least noise, camera movement, and fine detail possible so that the final movie will compress well and look good at a small screen size.
The capture step is where you change the original analog video into a digital signal in your computer with a capture card, and then store the video on a hard drive. You need a capture card, a fast hard drive, and a finely tuned system to do this well. The captured video is probably only viewable by people who have the same hardware as you, so you will need to make your final video in a format that is not dependent on your capture card.
Editing is the fun step where you take your raw video and turn it into a movie. You can also add effects at this point. There are many different programs to edit and add effects - choose your tools based on your needs and budget. I recommend you "cover your butt" by archiving your edited (but uncompressed) movie for future use.
Compression reduces your huge video file to a size that will play properly from CD-ROM or the Web. Since you are going to lose quality, it is important that you use a dedicated compression tool to get the best results.
You can distribute your movies via CD-ROM or the Web. You'll need some hardware for making the actual CD-ROM, mainly a "burner" and some media. If you're making a web site, there are several different programs available.
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