We recently upgraded to SnagIt 8.0, and it has a neat editor tool. We've been using it recently to annotate screenshots. We highlight problems or add explanations for bugs that we find in testing. It's a quick way to highlight the problems for the development teams. The technical writer uses it too to add tips or information to user guides. (We used to annotate PDFs, but our bug tracker didn't function well with that file type.) We're able to annotate the graphical file now, and we can email it or attach it to our bug tracker.

I used it this week to record notes from a Joint Application Development (JAD) session. It helped all the participants see the changes discussed.