Picture-in-Picture? Ulead Visual Studio can do that with overlays.
Basically, you have a video. Then you put another smaller video on top of it - an "overlay".
Go and grab the trial of Ulead VS10, then head over to the Ulead Forums to ask some questions. Here's a link to the tutorial section of their forums: http://phpbb.ulead.com.tw/EN/viewforum.php?f=27
or you can post back here. Dunno how many video editing heads are around these parts, though. I personally use a different editor, so I wouldn't be much help anyways. G'luck.
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