Okay I have never made an AMV before and now I want to.Simple no?It's for a project for school.

I've read a bit form this site and have come to the conclusion that using downloaded anime clips is a no-no.So now what? Ok I buy the DVD's.And then what?Stick them into my labtop and capture and rip? Whta does that even mean?Do I have to download or buy a program for it?
Next question,I with my newfound knowledge understand that I window's movie maker won't cut it.So what program should I use? I've read a lot about this Vegas thing...Is it any good?
What do I need?
Where can I get it?
What should I do!
What shouldn't I do!
HELP ME!
plese and thankyou,
Cula Cloverman,Master of Mischief