I've got a load of video clips taken from my Sony HD camcorder. Can anyone recommend some software (preferable free or cheap) that will allow me to add them all together so I can make a DVD/Bluray disc that will play in the player under my TV.
I'd like to be able to add music is possible to.

Which OS?

Windows 7

I've been doing a bit of digging and am looking at Window Live Movie Maker. Does anyone know if it's any good?

Not tried Live, but when I've used WMM before it imported each video as multiple clips that had to be reassembled. A right pain in the arse, but I'm not sure why it did that so it may have just been me.

If it's just a single project then you could trial Adobe Premiere Pro.

I made quite a nice vid using Windows Movie Maker before and it was all fairly simple and easy. I dont think it supports like AVCHD format I'm using now though so I tried Cyberlink Power Director and it worked a treat. v9 Deluxe is £35 on Amazon. Check which version does what you need though as there's also standard and ultra AFAIK.