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For example, say you have a picture or movie with a blank screen in it. You can pin the corners of your top layer movie to the shape of the screen, no matter what the size or orientation, and the movie on top will adhere to that shape and seem like it "fits" within the screen and is being played on the screen.
This is a very useful effect, especially if you want to integrate a movie into another movie and make it seem like it belongs there.
It would be awesome if Camtasia could do this as well! It is one of the few effects I still need AfterEffects for.