I know many people have seen the excellent Cropper tool for grabbing screenshots. I found another tool very similar to it by the maker of TaskSwitchXP called WinSnap. It gives a few additional features like adding a dropshadow or rotating the image. The good thing is that it is still a very small application. Here is a screenshot I pulled with it:

Cool shadow effect, huh? I’m giving it a try right now. It seems to work well for me so far.