Camstudio-mousedown-highlight is a project mainly written in C++ and C, it's free.
Modify CamStudio so that the cursor highlight is only displayed when the mouse button is pressed
This is a fork of CamStudio with an option to only show the mouse highlight when the mouse button is pressed.
My goal is to make screen recordings of the Android emulator look a bit more "touch like".
Here's what it looks like:
And here are the options I used:
The "Highlight only when button is pressed" option was added in this fork. The highlight rendering was also modified to make it look better on a dark background.
You can Download the executable here. You will also need to install Microsoft Visual C++ 2010 SP1 Redistributable Package (x86).