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Review by Nuk
Final Cut Express is your bridge to serious video editing. It has most of the features of the $1,000+ Final Cut Studio for a fraction of the price. It is a big jump for an iMovie user. Final Cut opens up a new world of expanse playground for creativity. It has a learning curve but very exciting and a joyful one.
A big difference between version 3.5 and 4 is the omission of Soundtrack (similar to Garageband but designed for videographers) audio software; but at the same time the price was slashed from $299 to $199.
FCE is a nondestructive video editing program. Clips in Final Cut Express are just pointers to the original source material and do not affect the source files themselves in your original footage on your hard drive. It can also import multiple formats and merge it in a project; DV, AVCHD, and even NTSC or PAL.
It might be worthy of upgrading from 3.5 if you have the new AVCHD camera. Otherwise, you may want to think again.
Check out the official Apple forum for tips and tricks. I also recommend to check out lynda dotcom for some great tutorials.
Mac only; If you want a good Windows video program, check out Adobe Premier Elements.