Adobe Captivate version 4 is the latest version of the Captivate Program. Captivate can create demonstrations, trainings, assessments or a custom combination of them.
Other programs that can create Flash files are Wink, Camtasia or Jing.
Examples of use
Create simple software demonstrations for users to view, and embed them in your page.
As a training simulation, you can walk people through a process on a site or in a piece of software, then allow them to repeat those steps by clicking and even typing into the simlation without actually leaving the site or having their own version of the software installed. This can be an invaluable tool in your Moodle toolbox because users will be able to repeat processes and review steps right inside your page.
After showing the simulation or demonstration, you can create an assessment for your users which can contain, multiple choice, short answer, or T/F questions and then package it in a SCORM zip file and integrate it with your Moodle page. For Captivate 4, this is where the documentation seems to be lacking, and I would like to see more info added. A module that includes an embedded captivate file and a use of the SCORM content is located here:  with a demo page here: 
How to put Captivate into Moodle
Using the SCORM Module
The following is based on this thread in the Quiz module forum:
1. Choose SCORM settings
- From the main menu bar in Captivate, select Quiz > Quiz Preferences... to open the Preferences dialog.
- Choose SCORM (set the rest as needed).
- Press the Manifest... button to open the Manifest dialog.
- Under Course, change the Identifier setting to imsmanifest, as this is the name Moodle expects the manifest file to have. Click OK to close the Manifest dialog.
- Click OK to close the Preferences dialog.
2. Publish to the local computer:
- in Captivate, go to File > Publish...
- Select location
- Check the box for Zip files
- Click Publish button
3. Add the presentation to your Moodle site
- Go to site homepage in Moodle
- Go to Files and upload your zipped presentation
4. Provide a link from the course homepage
- Go to the course homepage in Moodle
- Click Turn editing on button
- Under the Add an Activity dropdown select Adding a new SCORM/AICC
- Type Name
- Click Choose or update a package button
- Click Choose link near the zipped file
- Click Save Changes
As a Resource
If you do not require grade reporting, you can deploy Captivate presentations as a resource.
- In Captivate, publish for the web. You can publish for any version of Flash Player with this method but Player 9 or above is recommended
- In Moodle, upload the entire published directory without changing it to the desired course files directory
- On the Moodle course page, in the desired section, select "Add a resource..." > "Link to a file or web site"
- Fill in the "Adding a new Resource" form as desired
- Next to the "Location" box click on "Choose or upload a file". This takes you to the course files directory
- Navigate to the Captivate directory that you've uploaded and "Choose" the HTML file
- Click on "Save and display" to view the presentation
- That's it!
Using the SWF Activity Module
A simpler alternative method to deploying Captivate presentations as a Resource, without grade reporting, is to use the SWF Activity Module. It is not a standard Moodle module and must be installed prior to following these instructions.
Please note: This method will only work with Captivate presentations that are published as a SINGLE Flash file. If the Captivate output is two or more files, this method will not work.
- In Captivate, publish for the web
- On the Moodle course page, in the desired section, select "Add an activity..." > "SWF"
- Fill in the "Adding a new SWF" form as desired
- Next to the "SWF File" box click on "Choose or upload a file". This takes you to the course files directory
- Upload the published Captivate Flash (.swf) file only. The other files are not required
- "Choose" the Flash file
- Click on "Save and display"to view the presentation
- That's it!
There is an illustrated version of these instructions in the SWF Activity Module project site. If you encounter any problems with the SWF Activity Module, please report them in the issues tracker.
This was created as a Moodlerooms assignment.