Latrobe, and anyone else who's interested.
After using both Pinnacle Studio and Sony Vegas I arrive at the same conclusion. Pinnacle Studio is junk, too limited and with a rather childish GUI. You can not import *.avi files straight from Fraps but need to convert them first. When making a DVD you are limited to the default names for menus (My Home Video), it's not even possible to change it. How stupid is that? These and other limitations of the software makes it a complete waste of money. So, unless you can get it for free, don't buy it!
Sony Vegas Movie Studio on the other hand is much more user-friendly with a wide range of options to handle the media you need and to integrate it into your movie project.
Quick version:
Pinnacle Studio =
Sony Vegas Movie Studio =