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V.C. said:
Does anyone know of a free (or cheap) video editing program which has picture-in-picture capabilities and can be used commercially?
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Every videos editor I know allows people to use the content that is rendered from to be used in any means.

Sony Vegas and Adobe Premier both are the most popular among YouTube, both of which can do what you want but both have a hefty price tag (Premier is a Monthly Payment afaik apart of Creative Cloud), but Premier CS2 is free.
 
Don't view "picture in picture" as a special feature, because it's not. Every video editor that allows you to resize the video can do this. All you do is put the multiple video inputs into the timeline, resize the one you want to be picture in picture to be smaller and place it where you want it overlayed on the larger video. It's exactly as simple as grabbing a piece of clipart, resizing it and placing it on top of another image in an image editor. The only difference is the time componant.
 
How would you define commercial use? Professional level software is almost never cheap but if you are willing to pay then Premiere Pro and Avid Media Composer are good.
 
Meh. Adobe Elements will do it and that can be often found for less than $100. And it's not the cheapest either.
 
If you aren't after the professional stuff then I would recommend either Premiere Elements or Cyberlink Powerdirector, though neither have particularly nice workflows or interfaces, but I guess you get what you pay for!
 
Software is not like stock footage and music - you don't need a special license to use it for making videos for a channel since it is a tool rather than something that is on display.
 
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