Demofuse allows users to create website tours that are embedded in a site as opposed to traditional flash based site tours.

Demofuse is a one man labour of love. Toronto based Greg Thomson created and coded the site in 8 months without outside assistance, an impressive feat in a competitive industry.

The service works by using Ajax overlays that allow users to create slides from websites. Users simply click on the page they want included in the slide show and Demofuse creates a slide with that page.

Slides can include highlights, arrows and cursor clicks. There is also the ability to add script to a slide.

We covered web based screencast maker Screencast-O-Matic May 29 and Demofuse fits into a similar category. Like Screencast-O-Matic this isn’t a tool for professionals, yet for casual users looking at creating website focused interactive tours and presentations Demofuse would be ideal.

For a sample TechCrunch tour click the button.