Its probably quicker if I explain the idea.
My passion is rugby. I want to be able to take a video stream from the internet (a game on say, foxsoccer.tv, either live or archived), record it to my computer and then go through and select areas I wish to take from the original game(s) and record to make another video which I will then export to a blog or website.
The idea is to show a sort of 'best of' or 'greatest hits' in order to teach kids.
Currently unemployed so I have the time to 'mess around' but hopefully the end result can be achieved using free tools/programs.
Or, please direct me to tutorials.
I understand copywrite issues.

I haven't done this exactly but if I was going to then I would probably get a PC which could accept a TV signal or adapt the PC so it could with a TV Tuner card. You will need to be able to record footage to the hard disk to be able to then edit it.

Thanks for answering so quick.
I won't be extracting from TV.
Probably better if I give an example.
On You Tube many are able to post a video with a 'collage' of different say, tries or goals.
I wish I knew how to explain.
Lets say I download a game...rugby, football from a source such as foxsoccer.tv (internet based) or a bittorrent p2p site.
I now want to just extract the tries or goals and piece them together into another video.

To edit video clips together you would need some video editing software where you can import the original video clip and then slice it up, add music, titles etc

There are various packages, one of the more affordable for PC is: Video Editing Software

Simple as that?
I presumed it would be so much more difficult.
I'll check out your link. Thanks.

The key is to get your source video in the correct format, a great tool (and free) for converting video clips is WinFF - Free Video Converter

Once you have your source video the editor can take care of everything else like snipping bits of video, adding titles and music etc You can then also export to DVD.

Thanks