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While there are video encoders that do this kind of thing, most commonly this is the work of a video switcher or mixer. A video switcher is a device used for mixing live video from multiple sources. The bad news is they generally aren't cheap. An HD capable switcher is typically in the $6000+ range with the absolute cheapest one I know of being the Black ...


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Synfig Studio is a free option. It's a free 2d vector animation package, similar to Flash. I haven't used it, so I can't vouch for how easy it is to learn. Since Blender can pretty much do anything - provided you can work out how to use it - you could probably do this in Blender. Though it's not really purpose-built for 2d animation or motion graphics. For ...


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The animation that you refer to was probably made with Adobe After Effects. You can animate this kind of thing for 'free', if you don't value your time, using PhotoShop CS2 (free from Adobe) and the Quicktime player which will import image sequences and save them as movies. But your hope for free software misses the point that the costly parts of animation ...



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