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Windows Live Movie Maker is a free app that can do both audio and video fades (both in and out). You probably already have this application installed on your computer, and if you need further help I would imagine you can find a number of YouTube tutorial videos. Once you import your video, click on the Edit tab and you'll see the audio fades immediately. ...
You can't do much about it. Movie Maker can only export in WMV format - and WMV is created for small video sizes (at the cost of quality). You will need another software package to export in other formats than WMV. Check out Pinnacle products for alternative - they target amateur producers.
Blender, which is free and open-source, can do difference matte keying. I don't know if it's better or worse than After Effects' keyer because I haven't used it before.
What you need, is just manually find the repeatable part of the song you want to use, create new track in Audacity and multiply this part desired amount of times. Simply speaking, just cut it when it feels right and then copy paste the same part one after another. If it doesn't sound plausible, re-cut. Most "beat-finders" just find the BPM value and will ...
You didn't supply very much information, such as your OS and your desired output format, so I can not give you a detailed answer. CAF is a container format that can support several audio formats, but Apple Lossless (ALAC) is probably the most common. ffmpeg can decode ALAC in CAF: ffmpeg -i input.caf output.wav This can be turned into a "batch" command ...
Without looking into this in too much detail: ffmpeg lists a fade filter which fades in/out video. You might be able to use this in conjunction with the volume change filter to effectively fade in and our the audio/video.
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