I am looking for software I believe I have seen somewhere that would
allow me to create an interactive tutorial or demonstration with
screen shots and pop up balloons that explain each step.  I thought I
saw this in freeware, i see a lot of commercial software available
like demo builder, but i don't need a fancy program just some basic
features like that.   I am looking for freeware or something very
inexpensive (like under $30).   I have tried multiple searches and
can't seem to find it.  I think I saw it on another tutorial that said
"this tutorial was created with ..."

Try doing searches more along these lines and maybe you can find a good candidate:

://www.google.com/search?hl=en&lr=&q=open+source+screen+recorder
://www.google.com/search?hl=en&lr=&q=open+source+screen+capture
://www.google.com/search?hl=en&lr=&q=sourceforge+screen+capture

Thank you i found it!!