From Bobyte Software:
"AviScreen is an application for capturing screen activity in the form of AVI video or bitmap images. Beside the usual options defining the capture area, AviScreen has a unique feature called "follow the cursor". Using this mode you can produce a video or image of relatively small dimensions while covering all mouse activity over the whole screen area."

From my experience this program works well in both Windows Vista and Xp. Please note that in Vista there might be some glitches, such as no double clicking. This program is still great considering how old it is, and considering thats its free.
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