Magic Ink is a new tool in ActivInspire. If you are brand new to ActivInspire skip down to the Using Magic Ink section below. If you have used ActivStudio and ActivPrimary in the past, this explanation is just for you. The simplest way to explain the new tool: Magic Ink is the "old eraser" and now the new eraser in ActivInspire actually erases. You probably are used to Magic Revealers with ActivStudio and ActivPrimary. You can still create them, but I believe it is easier by using Magic Ink along with the new Object Browser. Just follow the steps below.
Using Magic Ink
1. Select two images. (I chose a potato and french fries).
2. Resize the images so one fits "inside" the other. (I have it so the potato can fit inside the french fries).
3. Using the Object Browser, make sure the object you want revealed is on the "Middle Layer." (For me, the potato is on the middle layer).
4. Using the Object Browser, make sure the object that covers the other object is on the "Top Layer." (For me, the french fries are on the top layer).
5. Select the Magic Ink tool and click on top of your top image (the french fries). You should be able to view through to the other layer (the potato).
6. Switch back to the arrow select tool.
7. Move the Magic Ink spot around.
8. If the Magic Ink is working, you probably want to lock down the two images so that students do not unintentionally move them and reveal what is beneath without the "magic." To lock the objects, go next to the images in the Object Browser and turn on the lock symbol. Do not lock the magic ink!

If you want to go a step further, you can create a Magic Revealer using the Magic Ink.
1. Go to the Resource Library and from Lesson Builder Tools pick a Gadget such as the magnifying glass or spectacles.
2. Move the revealer to the "Top Layer."
3. Using Magic Ink, click on the revealer.
4. Make sure the magic ink spot is listed above the revealer on the Top Layer in the Object Browser.
5. Group the revealer and magic ink spot together.
6. Test out the revealer with correctly layered objects such as the ones from the activity above (french fries/potato).

Don't forget--you can create your own unique Magic Revealer with different shapes.