Install ImageMagick
Win64 dynamicimagemagick.org
Add application directory to your system path
Conver cursor
convert c:/windows/cursors/aero_arrow.cur aero_arrow.pngSet cursor in VLC
Tools > Preferences > Show settings > All > Input/Codecs > Access modules > Screen > Mouse pointer image > d:/dropbox/pictures/aero_arrow.pngCapture
Media > Convert/Save > Capture Device > Capture mode > DesktopDesired frame rate for the capture = 24
Destination file = d:/steven/desktop/output.mp4
Profile = Video - H.264 + AAC (MP4)
Links
thejeshgn.com/2008/06/24/how-to-capture-the-screen-using-vlc-for-screencastingubuntuforums.org/showthread.php?t=656385