ScreenFlow is an awesome application for creating screencasts with cursor and window highlighting and iSight integration. Once you start recording, ScreenFlow captures not only what you're doing on your screen, but can also simultaneously record video form your iSight camera and audio from a microphone.

Today, Vara Software released version 1.1 and added several new features, including:
  • Audio waveforms shown over clips
  • Chapter markers for quick navigation
  • AppleTV, iPod and iPhone export presets
  • 20 - 40% faster export time
  • Quality and scalability improvements
  • New keyboard shortcuts
  • Vertically resizable timeline
  • Improved media panel
ScreenFlow sells for USD$99.99