As discussed in chapter 6 it is important to avoid wiggling the mouse if you want to bring attention to something – it is annoying and distracting. Instead use zooms for pure focus and spotlights if you want the user to focus on something within the context of the rest of the screen.
This video was created using Camtasia Studio 7 on Windows XP.
To improve your screencasting knowledge you must read The Screencasting Handbook. The author (Ian Ozsvald) also blogs.