I have a video that show the user how to use a website. I have the steps listed on the left side of the video. I would like for each step to turn from grey to black as the video talks about that step. Is there a way to do this?
This is something I would do with an interactive video, not the way you do it. But that is off topic. I cannot show you an example because I have issues with my host.
You need to insert the video as slide video, so that it is synchronized with Captivate's timeline. But even then it will not be easy at all. You could bookmark the locations in the video where you need the state changes. Those state changes can be done with an advanced action having Delay Next actions commands, and change the state at the correct moment. Still, there may be a short lag, you'll need to do some serious testing.
Okay great, if I use an interactive video can I insert a playbar? similar to one that would show on an MP4 video?
Captivate accepts only MP4 video, whether it is event video or slide video. Each slide video can become an interactive video.
Playbar in Captivate is for the complete project, not for one video. Event video has an individual skin, because it plays independently from Captivate's control.