Simulation demo shows only a portion of the screen, the video appears to zoom in

May I give you an honest answer? Please install Captivate Classic and use the software simulation in that application, you'll 'miss' a lot of frustrations. Whereas the workflow is identical (in new version it is mimicking the old workflow, re-introducing items like click boxes which normally are no longer availabel in the new version). you may have a better result because what you tell me is due to the focus on responsive projects which is a bad idea for software simulations. Moreover if you only need a demo, you should prefer Video Demo for capturing, because it has a much better non-destructive editor and more features in that editor. SInce Captivate's version 6 I never used the simulations in Demo mode anymore, only in Assessment and Training mode. Those modes should never have an automatic zoom/pan IMO.