Cool new trick with the 2.0 software upgrade. Now you can take a screen capture of the iPhone.
To take screenshots on your iPod touch or iPhone with 2.0 installed, just hold down the “Home” button on the front of the iPhone, and press the “On/Off “button at the top of your iPod touch or iPhone (it also works vice versa, hold down either button and briefly press the other).
Your display will flash white (like a camera flash) and the screenshot will appear automatically in “Photos” (in the “Camera Roll” Photo Album). This method will grab anything: a still from moving video, your home page(s), even an image from your iPhone’s Camera (same as snapping a photo).
I have included my home screen.