Actually Camtasia 2 and 3 both can highlight mouse movement and left and right button clicks of screen recordings created with Camtasia. When you record with Camtasia, we also record extra meta data. For cursors, there are 3 pieces of data - cursor image, cursor position, and cursor clicks. In Camtasia Editor, in the Tools panel, choose the cursor effects option. At the top of the view Cursor panel view you can choose one of 3 tabs, cursor, left click or right click. Simply drag the effect you want onto the media on the timeline that you with to apply it to. You can also get to the cursor effects from the main menu. Choose View->Tools->Cursor Effects, then choose Cursor, Left Click, or Right Click. This will open the proper tool panel and you can then drag the desired effect to the desired media on the timeline.