Which is the best editing tool , i would like to add effects and text . i tried WMM but the output quality's awful

Not a movie maker myself, but I think a lot of the guys use Sony Vegas?

Thanks but i would prefer a free

Don't know if you can do lock on with this, but I use "Magix Movie Edit Pro 12"...

With this you can import, export, video, movies from camcorders, digital recorders, etc, and cut splice edit, add text, just about anything you want. I use it all the time.

You can convert the files to many different formats, WMA, MPEG MPEG4, on and on... Not sure about the .mis files. Never tried it.