Energy:Whats the law of conserving energy?

When I see a ball hit another one thats stationary, the one previously not moving starts rolling in the direction the ball that hit it was. But the now moving ball had no kinetic energy before it was hit. Also, the one that had previously been moving is either still or slowly stopping. Why? Well, the energy from the first ball was transferred to the other one. By doing this, it is stopped or stopping. The energy from the ball isnt gone it was only moved. If a car is going fast then suddenly brakes, it screeches and the wheels are getting hotter and hotter. What happened to the kinetic energy from the car? It was also transferred, but in a different way. The kinetic energy was transformed into the screeching noise and the heat coming off the tires. The energy isnt gone. Its only changed. A law of matter applies to this concept of conserving energy. Matter can not be created or destroyed, only changed. Energy is the same. It can change from kinetic to potential but cant go away or be destroyed. http://library.thinkquest.org/2745/data/lawce1.htm