Captivate's Pan & Zoom feature, which is only available in Video Demos, is really two cool tools in one. Zooming gives you the ability to automatically get the learner closer to the action. Panning lets you automatically change the area of the screen that the learner sees. You can control exactly when the Pan & Zoom occurs, its Scale, Speed, Size, and Position.
To add a Pan & Zoom in a Video Demo, first position the Playhead on the Timeline where you'd like the Pan & Zoom.
On the Pan & Zoom panel, click the Add Pan & Zoom button (if the Pan & Zoom panel is not on your screen, choose Window > Pan & Zoom).
On the Timeline, a Pan & Zoom point is added (in the image below, it's the orange circle with a magnifying glass in the middle).
To control the Pan & Zoom, drag and resize the Pan & Zoom window on the Pan & Zoom panel. (The smaller you make the Pan & Zoom window, the larger the zoom.)
You can control how fast the zoom occurs by adjusting the Speed via the Pan & Zoom panel.
The fastest way to zoom the learner back out (so they can see the entire video) is to click the Zoom Out button on the Pan & Zoom panel.