Hi Chris,
I am actually using camstudio, I have not been able to use camtasia and unfortunately camstudio only provides .avi files.
My original sequence I used was the XD Cam EX but it wasn’t looking to great when I exported. I then saw tutorials that said to change my sequence to the following settings:
Editing Mode: Custom
Timebase: 29.97 fps
Frame Size: 1920X1080
Pixel Aspect: Square
Fields: None (Progressive)
Display Format: 30 fps Drop-Frame Timecode
Preview File Format: I-Frame Only MPEG
Codec: MPEG I-Frame
Size: 1920X1080
Maximum Bit Depth: Yes
Maximum Render Quality: Yes
Yes I capture the video from our computer while shooting video of the person explaining what is going on and edited them together. My Original capture footage is 1920X1080 as well.