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Did you see this question only a few hours ago?
Thanks Peter but what I'm really looking for is just the outline of a circle around a subject without dimming the rest of the video.
You could do it with Photoshop. Make a new file with a blank background. Put a circle on it of the approx. size you need then choose a color for the circle. Click edit, stroke and choose the # of pixels, click ok. Save it as a png to preserve the transparency.
Use the picture above the video track. Only the circle will show on the video below it.
You can also do circles with the Titler if you pick a style that allows you to make the fill of the circle transparent using the color properties dialog. You modify the fill and stroke properties. There are three boxes in the color dialog, white, black, and one with a red diagonal line. The one with the red diagonal line makes the fill transparent.
The Eccentric Thin Wood style is an easy one to modify. Just draw a circle shape first, then apply the Eccentric Thin Wood style, then modify the properties in the color dialog.
Watch this video demonstration. It worked for me in PE4.
(same demo as the first)
I use two monitors and it makes it very easy to watch the demo and copy the steps at the same time. The demo is made for PE3, but it's the same for PE4. It's just a matter of finding where the certain features are you need to use.