I also don't know exactly what Xara used, but I've done a decent number of videos with (what I think is) the industry "standard", which would be Camtasia Studio, which is made by techsmith. It's a little pricey for a hobby, but it's also pretty full-featured. They have a free program with time limitations and no editing called Jing and the full Camtasia product, which runs $299. You might be able to find a bargain bin copy of an older version around somewhere for less, though I've not seen any myself.

I have version (I think) version 7. they are on v8 now, but their upgrade costs are a bit high at $150 - about half of the full new version. Not terrible, but not justifiable for me. Since I own a technology company with a computer training service offering, I can at least write it off as a business expense!

It really is a pretty cool application, as it lets you do screen zooms, title pages, annotations, multiple audio tracks (so you can record the audio as you go or add it later or both or layer in background music or whatever), video transitions, etc. It's funny because I created videos all the time prior to purchasing the tool and I haven't created one since! I DO use Jing all the time because it's really fast to get quick tutorials to my computer clients. Since I do Joomla websites and use Xara to build the mockups and nearly all of the graphics we use for them, I am working on some Joomla tutorials with it as well (as time permits).

Hope this helps. You can find the product here: http://www.techsmith.com/camtasia.html