Using things like Camtasia Studio to document software can be a great instructive aid, and they can also work as decent advertising.
However, the problem with videos for documentation is that they are very difficult to search. It's tough for the user to find out how to do a specific thing unless there are a LOT of very small videos that are very well labeled in some other place.
And, just like manuals, you can expect that the user will not watch the videos BEFORE they use the product.
Videos can be a nice help but I feel that text documentation is still most useful for when someone wants a specific bit of information.
You might try using text explanations that reference specific videos or a specific time within a video.