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The Camtasia Recorder is used to record either the entire
screen or a portion of the screen and it's vastly improved in
Camtasia 5. When you start the Recorder, you select an area of
the screen that you want to record. You can either select a
region or select an application. In most cases, you'll want to
select an application. After you've selected your application,
you'll have the opportunity of selecting the screen size for
your recording. Camtasia Recorder will resize the window of
the application you are recording so that it matches the
screen size that you select.

Camtasia Recorder - Click for a larger
image showing the Recorder locked to an application.
By selecting the Lock to Application checkbox, Camtasia
Recorder will automatically track both the position and size
of your application's window. This is one of many features
that you won't fully appreciate until you've used it for a
while. Because Camtasia Recorder locks itself to your
application window, you won't introduce unwanted shifts in
your recording if you pause recording and move the application
window.
Another great new feature in Camtasia Recorder 5 is the
ability to remember the mouse pointer position when you pause
recording. When you press F9 to pause your recording, Camtasia
Recorder makes note of the position of the mouse pointer. When
you press F9 again to continue recording, the mouse pointer
returns to that position and recording resumes. You no longer
have to concern yourself with a jumpy mouse pointer when
stopping and starting recordings.
After you've finished recording, Camtasia Studio makes it
easy to target a device in the Project Settings dialog. The
Project Settings dialog also exposes another feature new to
Camtasia Studio 5; SmartFocus. SmartFocus is a feature that
uses mouse clicks and position to determine the area of focus
for your recording. If you choose to use SmartFocus, you can
record the entire screen and then let Camtasia add Zoom-n-Pan
keyframes to focus in on areas of interest. It's a great
feature, but it sometimes produces unpredictable results.
(For example, SmartFocus would sometimes zoom and cut off the
edge of a context menu.) However, when it does misbehave, it's quite easy to make minor
adjustments and fix any problems. SmartFocus is one the best
improvements to Camtasia and will likely improve in future
releases.

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