Use ShaderFX to apply effects such as mirror, color separation, blur, and many more to the camera live preview, and capture live shots. This demo version is ad-supported and contains only a small subset of effects and does not support custom effects.
The full version with 50 effects can be downloaded here: http://market.android.com/details?id=com.tequnique.shaderfx
The full version of ShaderFX can be extended with custom shaders using OpenGL ES2 fragment shaders. Detailed instructions how to create shaders can be found on the ShaderFX website: http://s.meh.at/shaderfx
Shaders can include time and mouse input for creating interactive effects and it supports up to 4 custom texture units (texture units do not work on all Android devices).
ShaderFX requires Android 2.2 or higher with OpenGL ES 2 support.