Making demo videos

[Marinesko]

I'm not too literate on video production, so I need a little help. First off, what is the best way to make a video in the game(like RR's vids for example)? What I want to do is get a clip of a freighter getting whacked by three or four torpedoes, and then via the use of some program(I assume you would need some kind of editing program), mix in the theme song to Titanic. It would be good for a chuckle.