Never heard of libav? Neither did I before until I read this thread FFmpeg-devel, then I decided to submit on libav-devel.
I got immediate response and many pointers about my code. I did wrote silly code, you can read my threads followmouse-1, followmouse-2, and showregion.
Basically, you can use
-f x11grab [-follow_mouse centered|PIXELS] [-show_region 1] ...to enable these two options. You can see a video about them, but I changed they style, it's now dashed line box, not the solid lines as you see in that video.
Go grab FFmpeg or libav, if you can't wait.
(I did get a reply on FFmpeg-devel after the merge)