Sorry I'm late.
You need have java and the android sdk but it claims 4 or 5 fps -that's a lot better than 40 fpm and the best part is, on rooted phones you can remote control the device with the mouse and keyboard. You can also record videos while using remote control so it gets my #1 so far.
It's a really handy piece of software when developing and yes it's free with java source available.
It's available at http://code.google.com/p/androidscreencast/
- It actually took me a while to realise I just needed to run the jnlp file as I expected to have to install an app onto the phone before running it.
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