All your iMovie 09 tut videos on youtube feature your face in the bottom left corner (and that vide is tilted a bit). Did you MAKE those tuts with iMovie? I saw the Pic in Pic demo and it said the inset movie had to be in movie ratio and did not appear you could tilt it?
— David Landis
That effect you are seeing is from when I shoot the video using Wirecast, which allows me to record both the screen and video at the same time. However, you can do the same thing, cheaper, with Wirecast's little brother, ScreenFlow. Look into that. iMovie Picture-in-Picture is similar, but is done during editing, so you would have to shoot the video and screen capture separate and then sync them manually. That's not a good way to do it.
See episode 265: http://macmost.com/making-the-macmost-now-video-podcast.html