XDA forum member jcase has developed an Android packet sniffing application, Andro Shark.
The sniffer captures each packet of data flow across your WIFI and/or 3G network and Andro Shark dumps all traffic into a standard packet capture (pcap) file onto your sdcard. The data is saved into a new folder which gets created on your sdcard by the application.
The file can then be read with any application able to read pcap files, such as Wireshark.
Andro Shark is in public beta, and jcase is open to feedback and feature requests.
To download the application and provide feedback, check out the application thread._________