What hardware/software do you use to illustrate your videos?

I use a Wacom Bamboo Pen tablet ($80), and the Corel Painter Essentials software that came with it. For screen recorder software I am using iShowU HD on a MacBook Pro ($29). Sal Khan, who makes thousands of tutorial videos for khanacademy.org, uses the same tablet, SmoothDraw 3D software, and Camtasia Studio on a PC.