Now Software. The thing is with film software, it really all depends on how much money you have to work with. Film editing software really ranges from $0 to tens of thousands of dollars. Some people in the industry have their own custom software built specifically for their company.
I started with iMovie. It is a nice kick-off point if you've never done anything with film before, but you don't want to use if for a real movie. I then switched over to Final Cut Pro 7. At the time it was used by most independents, being not too expensive but solid. True Grit was actually edited on Final Cut. Apple then released the new edition, Final Cut Pro X. Frankly, it was probably the biggest waste of money I've made in my entire life (with the possible exception of this one Playmobil pirate ship...). People who make movies professionally either switched to a new software or didn't upgrade. Pro X is basically a slightly glorified version of iMovie; it's not a professional editing software.
Recently, Adobe has been taking this market. Adobe Premiere Pro can basically do anything Final Cut can, and has a couple other nice options (and personally I prefer the GUI). I think Premiere Pro CS5.5 (what I use) is excellent, and I hear CS6 (which I will upgrading to pretty soon) is even better. The nice thing about Premiere is you can use it easily with Adobe After Effects, which is the best cheap special effects software out there. I can color correct excellently, make cool 3d text effects, create realistic explosions coming out of buildings, muzzle flashes and blood for action films, all sorts of stuff. It's great.
If you get really into special effects, you're going to want to start using a 3d modelling software. Blender is nice because it is free, and there are a lot of good tutorials out there for it, but it has a terrible renderer (it's just slow). Supposedly 3d Studio Max is the industry standard; I've used it and it does work well. I downloaded the free student version of Maya 2012 from the Autodesk.com website, however, and I can create 3d models and animate them perfectly fine. If you get really good at this sort of thing, you can implement these models into live footage, and then have flying CGI helicopters in you're movie, which is awesome.
For implementing 3d models into live footage, you need a camera tracker. Originally the only ones out there were like boujou, which is around ten thousand dollars. Now, however, Video Copilot sells a $250 3d camera tracker that you can use with After Effects. You can then 3d motion track your footage, send the tracking information to your 3d software (like Maya or Blender) and then export the 3d content with the tracking info as a video alpha channel. You then import that into After Effects, and you have a 3d model to work with in your footage. After Effects CS6 has a 3d camera tracker built into it; I don't actually know how heavy duty it is, but will be testing it for these purposes later this week.
If you want to do sound effects or score your film and have some music composing ability like me, there are a couple programs you can use. Garage Band is free, but I'm honestly not a huge fan. I think studios use Pro Tools, but I didn't want to spend that much. For $200 I downloaded Logic Pro 9, and I can literally import mov files into the program and write music right over them. The software has a nice variety of synths, and with my Zebra II plugin, I find that I can create pretty neat soundtracks. Just recently I finished a drum-heavy track for an action scene that turned out great using the "Drum of Mordor" instrument in Zebra II.
I'm sure that there are plenty of other awesome film software programs, but these are the ones I use and I find that they take care of my need quite well. Feel more than free to experiment though.