Vegas is definitely what you're looking for: it allows you to insert text very easily as well as graphics and background. Track fading/blending is a simple drag and drop. It's not only easy to use, it's also quite fun to experiment with the wide variety of plug-ins it includes (e.g. black-and-white, swirling effects, cookie cutter effects, green screen effects, etc.).
I record one second of footage, then I move the clicky. Then another second, then I move the clicky again. Then I upload this footage to the editing program and speed up each individual second of footage to get the animation fairly smooth. The smoother you want it, the more footage you'll need. In other words, you can have a clicky move his arm in two movements or four, depending on how complex you want it. It does take a while -Caballus took me a month for four minutes of footage- but it's a lot of fun.
I'm looking forward to seeing your films!

Thanks for all your kind words!