The file allowed the effect just fine. I added a second video file, then I could not add the cursor effect. I created a new file and tried to add the effect with a new video and the problem persisted. I tried to repair the program, restarted, and I still can't add the effect.
I would like to add a feature request to allow one to add a cursor effect to a video (e.g. AVI) on the Timeline, not just to a .TREC. (I know you can take your .AVI, play it while recording the screen to create the .TREC, then place the .TREC on the timeline, but that is a lot more work).
Anyone know why the heck you can't add cursor effects after the fact on .AVI like you can on .TREC? I keep forgetting this is the case and then don't get the effects at all. Is it a bug or just annoying?