Screencast Video Recorder has been a favorite of ours since its release, and has been featured in our own Top Android Apps Every Rooted User Should Know About and Best Of 2011 posts. Needless to say, we think this app is top notch, and I'm sure tons of other Android users would agree. Not only does it offer video capture with many features, but it has some pretty nice screenshot functionality as well.
When you stop and think about it, an app that could capture what is happening on your phone's screen in high quality mp4 format would be pretty useful. With such an app you could show off a neat new live wallpaper, make an easy to follow tutorial, or do a solid video review of an app - all without having to use a dedicated camera. Wouldn't it be sweet if such a thing existed?