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Recommendations for movie editor

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Hi everyone,

I'm just starting to get into creating a video on demand system for my home which is also a good way of backing up my DVD collection.

Is there a movie editor out there that can join up movies (ie; lord of the rings which resides on two DVDs) into a single movie? But I also need the editor to be able to split a movie (along with keeping the appropriate chapters); this is for Bablyon 5 series that has merged 4 episodes into one movie line per DVD. A bit of a pain if you just want to watch a specific season/episode.

Hopefully any recommendations aren't going to recommend studio class software that costs an arm and leg.

Thanks
 
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