So what software do you guys use?

[Davis Fang]

Sony Vegas is good for starters but it's always good to get a hold of Adobe After Effects.
I believe Adobe Premiere is one step below After Effects, moreless similar to Sony Vegas but better. lol.

Actually, After Effects and Premiere are used for slightly different tasks. Premiere for example, like Vegas is often used for creating the final edit of the video or compositing the video together (just basic editing really), while after effects is used prior to that process to create various effects like explosions and such. Hence, one may use both premier and after effects to create a video
Back in my PC days, I loved using Vegas, but I was less fond of Premiere as I found the interface to be more cluttered and required more clicks to do what I wanted. I also dabbled in after effects, and while extremely advanced, was too expensive for my meagre student budget. Hence after switching to mac, I am using Apple's Final Cut which is like Premiere and their equivalent of after effects, called 'motion' which I am extremely pleased with and are both far more affordable.