ShootMe is by far one of the best Android screen capturing programs out there. It has just received a quite large update bringing in a new UI and even the ability to capture ScreenCasts.
The video capture from the application isn't the most refined. You will only be getting 10 frames a second when producing ScreenCasts, but it's worth noting that this is the only application like this that allows such a feature - so we can't complain.
You can find out a video demo of the application in action from the kind folks at AP, and the application update is available now from the Android Market.