This product is called Jing. Today, Jing is offering an expanded set of features in Jing Pro, which costs $14.95 a year. For this price you get a better quality of movie (an MPEG-4 AVC), smaller video files, a link to upload directly to YouTube (you can still upload to other video sharing applications like Facebook), and the Jing branding is gone from the final product.
I've attached a sample video I created using the free Jing. This file was uploaded to Screencast.com, which has some free space for Jing users and clicking on the link will take you to Screencast where you can view it. The movie gives instructions on adding photos to Office 2007's PowerPoint.