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Using picture in picture that is available in any editing program that can support multiple video tracks will do this effect and better. Final Cut Express, Sony Vegas Platinum, and Premier Elements are each inexpensive options that can give you this ability.
Using PIP will give you the flexibility of creating a layered montage effect with each video element playing in different areas and sizes on the screen. You could then layer this over another background such as a virtual set, screenshot, or stock photo. In all of the programs above, the effect is very easy to do. Just remember that as you stack video tracks, the ones on the bottom in your timeline will appear in the background on your screen. Each program sizes and positions the playback windows just a little differently, but none of them are hard to figure out.