You can of course add text and for more complicated motion captures, a useful auto-tracking feature follows the movement of the mouse without you having to do a thing.
Cam Studio is an excellent free screen capture tool merging the best of screen capturing apps with video editing packages into one very impressive program.
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The range of output files is admittedly limited - Cam Studio will only output in AVI format but you can also convert movies to Flash (SWF).
You can also choose the codecs used to encode your screen capture shots and set the frame rate you need to capture at.
Ordinary screen captures are performed in much the same way as in most screen capture applications.
Simply drag the mouse over the area you want to capture or tap in the coordinates.