best practices for creating screen casts

I am creating a long module with some videos that show a process and some that will have the Step by Step mode.  I have found that the editing features within Storyline to edit the audio/video are not great.  Articulate Replay has the editing features that I am looking for but when I insert into a Storyline slide, it does not look very good.  Is Camtasia the best for this to create clips, publish as AVI or other files and import into Storyline?  What am I missing??  I want to have videos that show a process where the user just watches a 3 minute section... then a different part of the video, the narrator tells them what to click, using the Step by Step mode.  As I stated, the editing features within Video Edit on Storyline are just not good enough.