How to video in video?

I have Cyberlink PowerDirector 7 and Camtasia Studio 7. Both are very useful programs. Camtasia Studio 7 is a program where it records everything on the screen plus whatever audio thats playing on the computer. Cyberlink PowerDirector 7 is where you can take a video and put PIPs and many other things into the video. Lets say you want to take a dancing monkey out of a video and add a background. Just make sure it has a solid background and you can add anything to the background of it. There is a person on Youtube named tofaboys that used Cyberlink. Its a very nice video of Transformice and if you do indeed look at it then there are only two videos so you can look at both which CyberLink was used. Hope I Helped!