Re: Is this ever legal?

q[BackwoodsTerrorMovie] "but I can be sure that there aren't documents saying its not allowed either."

That is terrible advice.
What you really need to do is consult with an attorney who is knowledgeable in copyright law. Once you start editing/adding video/pictures, you are essentially creating a new work using elements that you don't have permission to use. I believe that because you are using it for student use is immaterial, but that is why you need a lawyer.
Peter