That is, you can insert an effect into your video where a missile blows up an object by just selecting with your finger where you want it to hit. Of course, you can't compare the result with that of a professional program, but keeping in mind that it does it in less than a minute, it is pretty spectacular.
Some useful advice when recording the video you're going to add effects to is to try to keep the camera as stable as possible and keep the shot clear from objects, otherwise the effect won't turn out so good.
Action Movie FX is a utility that can give you a good laugh if you use it right. It doesn't really have lots of features, but the little that it can do, it does well. Of course, it also gives you a chance to launch a missile at anyone, which is pretty awesome!