Have you tried recording what they do with a video camera or some sort of screen recording tool? This has been very useful for me in bug reporting, I imagine it might translate into what you need as well. I'm a pretty big fan of BB Test Assistant and Wink as far as recording tools go.
I didn't really like that either. I have 3 monitors, so it makes for an awfully wide image. Plus I always keep my email on 1 monitor, so I'd have to always remember to minimize that and anything else I didn't want immortalized in a screenshot. I'd never even seen PSR before, but now it's got me wanting to find something similar - just better.
EDIT: Found a mention of a program called Wink in an older Reddit post. Tried it out for a few minutes and it looks legit. You just fire it up and then start stepping through your process. You can do timed captures at so many frames per second, you can capture on mouse clicks, you can capture with a hotkey. It's pretty sweet. Then you can go back and edit the frames almost like a video, adding callouts, moving the cursor, hiding the cursor, adding shapes and arrows, etc. And it's free. Hard to beat that.
I always use Fraps for video capture, I paid for it quite a few years ago, but there's a free version that just puts a watermark on it.
Another option, for more screenshot like presentations would be Wink: http://www.debugmode.com/wink/
Microsoft Expression Encoder includes screen recorder. Free version has the limit of 10 minutes, and can only encode .wmv files but it's the best free solution for desktop recording I've found.
You might also try Wink for desktop recording.
For games (and other DirectX and OpenGL applications) Fraps might be better, but free version has a time limit of 30 seconds and creates a watermark on top of the video.