XDA forum member w00yee has developed 'a better spy camera app' for Android devices.

If you're in a situation where you really need to take a photo of someone/something, and just don't need them to know,  then you can use CallCam Spy v2.3 to help you do so.

Originally posted by w00yee:

  • Very fake incoming call interface, making Spying as easy as pie.
  • No shutter sound.
  • No flash.
  • Just hit 'End Call' (shutter) to take a picture.
  • Pictures are saved in root folder of SDCard.
  • Vibrating notification.
  • Android 1.6(+), fully supports Nexus One & Droid/Milestone.
  • Coming soon:  VIde Recording.

Callcam is available for $2.99 on the Market.

For more information, visit the application thread.