I saw this feature a year ago but only just got round to looking at it. Goto www.clicktale.com and look and there software. Its kind of like Google Analytics "Site Overlay" feature where you can see which links were clicked, but this one is slightly better. It has features to show where users hover their mouse, show exactly where a link was clicked (Not just saying that it was clicked), page recording to show the exact movement a user did with their mouse on a page.

We are trying the Free version at the moment which records 100 page views only per week across your domain but it gives you an idea of how it works. They do charge if you want to continue to use it, but i think we will for the results you can get.