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DVD recorder 007 Nightfire quality test videos

I just uploaded two quality test videos of 007 Nightfire for the Gamecube using my DVD recorder I got off ebay. It too me awhile to find good free file format converters but I eventually got the file on the disc into .wmv and .mp4 formats. I could't edit the .mp4 one at all, since windows movie maker can't take those files. But when I converted it to .wmv so I could edit it slight (I just added a title and clipped a little off the end) the quality got a little worse. Anyways here is both tests...

...in MP4 format >http://www.youtube.com/watch?v=Z0bwVWmhUb0

...in WMV format >http://www.youtube.com/watch?v=pOhdiaCrGH4

Do you guys think the quality of the WMV one is good enough? Should I get another video editing software that can edit MP4 files? If so, which one should I get?