After taking a quick peek through the Android source code, I figured out how to write an application that takes a screenshot of whatever is shown on the phone. However, you must have root to use this application.
Download it off the Market!
Choose the amount of time to wait before taking the screenshot:
Once the screenshot is taken, you will get a toast on the bottom of the screen letting you know:
Go back to the Screenshot application and view the screenshot and save it out: