I'm trying to take a screenshot of my device and when I bring up the screenshot tool within ddms I see a large blue X with a white background. I've tried it with several emulators and screens sizes but I get the same thing.
The problem I was having is that you need to have a skin
associated with the emulator. I originally had the Skin with dynamic hardware controls
option selected which gave me this result. When I changed the skin to any of the normal skins everything worked fine.