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There are various programs that the YouTubers use. The most basic and amateur programs being iMovie (MAC) and Movie Maker (PC)
However, the more popular and prestigious YouTube users probably use more professional software. Sony Vegas Pro (PC), Adobe Production Premium (PC/MAC), Adobe Premiere Pro (PC/MAC), Final Cut Pro (MAC), and Avid Media Composeer (PC/MAC) are all very popular and thorough editing programs. These programs are all very high end, and cost between $700 and $2500 for the full program.
I use Final Cut Studio Express, which is only about $300, and it works wonderfully for the videos I edit. Unless you're planning on doing some hardcore video editing with incredible special effects, stick to an "express" version of the editing program. Before I had FCE, I used Movie Maker and was able to produce some nice looking videos, just as a reference.
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Arkansas\
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