TiltShift Generator
Takayuki Fukatsu has released a new application for creating TiltShift effects on the desktop. TiltShift Generator is an Adobe Air app for Mac, Windows and Linux. Using a simple set of controls you can quickly apply wonderful TiltShift effects to your photograph. Radius and strength included, a number of different effects like saturation, contrast, brightness and vignetting have also been added.

"Tilt-shift photography refers to the use of camera movements on small- and medium format cameras. In many cases, it refers to tilting the lens relative to the image plane and using a large aperture to achieve a very shallow depth of field" - wikipedia
See also: TiltShift for iPhone. A great addition … and it's free.