The shading bit can probably be achieved using a Highlight Box object.
For the zoom, indeed it will pixellate on you and become fuzzy. If you can, take a screen capture of the zoomed area where it looks as you like. Then substitute the image for the zoom.
Sorry for the late reply - and thanks for the info Rick! It worked. A bit laborious... but it worked :-)
When I create a Zoom object and substitute an image for the zoomed area, shouldn't the image fade in or something? I've got the transistion set to fade in, but it seems to fade in the Zoom area rather than the designation area. I've never been able to get this feature to do much. Does anyone have a tutorial on how to use this effectively?