www.dvdaf.com is free, and really pretty good (as far as a straight list of DVDs goes.) It may or may not be moving towards an "IMDB" style "filmAF" that will combine DVD info with film info (allowing for searches and lists for actors, directors, and so on.) I'm kind of miffed, though, as the head honcho recently closed the forum that was associated with the site: film-talk.com.
I used to use DVD Profiler, and the free version was actually pretty good (ad supported, but most features of the full version.) However, they changed to a really crippled free version (that lost a lot of functionality after 25-50 movies.) If I had the $25-30 now (the cost of 1-2 DVDs), I'd probably pay, it's still a good program.
One good thing about a program compared to an online cataloguer is that you don't have to worry about the internet or the webpage going down, and you could concievably enter all the information on a DVD yourself, including cover art.
Programs allow for great sorting and searching, you cold have a DVD Profiler collection with an "Animated Movies" folder, and then have subfolders with Disney, CG, Anime, and so on. After that, you could sort by year, search for actors and directors within your collection, and many more options.
The big problem with Microsoft Office or something is A. It's not free either (actually, it would be several times the cost of a DVD collection program), B. it requires some knowledge to use, C. you would have to enter ALL information you wanted included (which would be a task with 3000+ movies), and D. I don't know how well it would handle cover art, searching for actors, genres, etc., a title in multiple folders, and so on.