I have had a few people ask me who to create dreams, loops mainly, without buying an expensive editing program.
The Windows Movie Maker does a good job at it and well, the price is right. I have created a short tutorial that covers how to accomplish this. I'm not sure if all versions of Movie Maker are the same and I used the one that comes with Vista Ultimate.
Keep in mind that there is no substitue for Adobe After Effects and this method will degrade the video quality a litttle bit.
Also, I have a cold, so please excuse my voice.
Tutorial