how do you make cutscenes/scolling text

I have just a few questions.
1.) How do you make cutscenes, both movie and scrolling text intos that you always see.(cliche, but still great )
2.) How do you actully make the avi movies (any good programs to use)
3.) What are the uses of varibles?
4.) Is it possible to alter the battle system, and if so to the point it is like a fire emblem/FFT system.
5.) What is the best order to make things in your game. I have got it going by towns and it gets a bit complicated.
If you could answer these questions I would be very thankful.