AnimeMusicVideos.org

It is possible to make that kind of effect on a single line editor but it just wont look as good as a multi track editing program

Just change the Composition settings to have more than 15 secs,
STEPS
1. Go to your timeline
2. right click
3. Click Change composition settings
4. change the time duration

In AE you will need to actually change the solids a bit and add some grayscaling/tinting effect to create this exact effect. In Sony Vegas however all you need to do is add a Film Effect and possibly a few tweaks.

Blur Any sort
Opacity changes
Curves
Distortion (a swirly kind but make sure it is very small)
Twitch (video copilot)

you will need lots of Keyframe for this effect. Dont forget you should also have lots of Frames per second for this animation since theres quite a bit of twitch effect applied here.

For AE, i prefer CS4, i tend to do better in CS4 editing.

With After effects you should go to a site such as videocopilot.net it has great tutorials to help you create stuff in AE, if you learn the technique they teach you can create amazing AMVs with AE

Mpeg 2 is not a codec you should be using if you are making AMVs with it, you should use UT or Lagarith codec with AVi which will for sure give u a large file size however you can reduce the file size by about 10 times with thte program VirtualDub. It keeps about 99% of the quality of your AMV

i would recommend a high quality dimensions with an AVI codec such as Lagarith. It is a lossless codec similar to UT which then you can compress with another program such as Virtual Dub