GifCam

http://blog.bahraniapps.com/gifcam/

GifCam is a simple program aimed at making gif easy and quick. It is shown over the top of the screen and simply captures everything in the window as a gif. It also has some nice features to edit your gif before you save. It's handy for making short demonstrations of things that would otherwise be hard to explain with a static picture or words. For instance, on the Rails-Test-Plan it is used to demonstrate how to layout each test section.

Installing

GifCam doesn't require installing, simply download it from it's website and run. It is windows only however it may function on Linux using WINE.

Usage

Using GifCam is a very simple process. Simply move the program over what you want to capture, resize it a tad and click record. Once you want it to end click stop.
If you mucked up click the down arrow next to record and then click on new. This will erase what you have recorded so far and stop recording. Saving the program is also as easy, click the save button and it will spit out your gif. If for some reason you wish to view your gif before you save it then click the down arrow next to save and then click preview.

What makes GifCam even cooler is it's neat abilities to edit and tweak the gif. The most used/most common is the edit button. This will bring up an interface to edit the gif frame by frame. Right click on the frame to bring up a menu.
(You can remove the ugly Greenscreen by right clicking and going "Greenscreen -> "Show Greenscreen")