There are a number of tools on the market to capture screen input and produce demonstrations and courseware. When you start looking at tools, you'll obviously evaluate them against a number of criteria like performance, features you need, and the operating systems supported.
During my teams testing, we discovered TechSmith's Camtasia v3.x was an excellent product and we have been using it pretty extensively for the past couple of years. Most of that testing was exploring what types of demos work well from blogs and other publishing media server types. Camtasia v3.x worked great with Windows XP and our virtual technologies so it became our preferred tool for capturing those demos.
Well, Windows Vista side tracked our focus a bit and also threw a monkey wrench into our plans. Camtasia v3.x wasn't compatible with Windows Vista and the version 4 product had some issues as well. However, I am happy to announce TechSmith has released a Windows Vista compatibility update.
You can download the trial from http://www.techsmith.com/download/camtasiatrial.asp. If you purchased Camtasia v4, you can download the trial and use it to update from v4 to v4.01 and pick up the Windows Vista fixes.
Several members of my team have tested the v4.01 beta versions. I just installed the v4.01 RTM product and thankfully I thought ahead and brought my headset to Orlando. I'll be doing some demo captures over the next couple days so I'll let you know if I hit any snags.