I found this nice write-up that clears it up pretty nicely:
The different graphic assets we request are used to highlight and promote your application in Android Market, and possibly other Google-owned properties. If you’d like to restrict the marketing of your app to just Android Market, you have the option of opting-out of marketing by selecting the "Marketing Opt-Out" in the Developer Console.
Screenshots (Required):
We require 2 screenshots.
Use: Displayed on the details page for your application in Android Market.
You may upload up to 8 screenshots.
Specs: 320w x 480h, 480w x 800h, or 480w x 854h; 24 bit PNG or JPEG (no alpha) Full bleed, no border in art.
Tips:
Landscape thumbnails are cropped, but we preserve the image’s full size and aspect ratio if the user opens it up on market client.
High Resolution Application Icon (Required):
Use: In various locations in Android Market.
Does not replace your launcher icon.
Specs: 512x512, 32-bit PNG with alpha; Max size of 1024KB.
Tips:
This does not replace your launcher icon, but should be a higher-fidelity, higher-resolution version of your application icon.
Same safe-frame as current launcher guidelines, just scaled up:
Full Asset: 512 x 512 px.
Circle or non-square icons: 426 x 426 px, centered within the PNG.
Square Icons: 398 x 398 px.
Drop shadow: black, 75% opaque, 90 degrees down, distance of 14px, size of 36px.
Tweak as necessary to fit icon style (e.g., Google Maps icon has a drop shadow of varying height).
Promotional Graphic (Optional):
Use: In various locations in Android Market.
Specs: 180w x 120h, 24 bit PNG or JPEG (no alpha), Full bleed, no border in art.
Feature Graphic (Optional):
Use: The featured section in Android Market. Will be downsized to mini or micro.
Specs: 1024w x 500h, 24 bit PNG or JPEG (no alpha) with no transparency
Tips:
Use a safe frame of 924x400 (50 pixel of safe padding on each side). All the important content of the graphic should be within this safe frame. Pixels outside of this safe frame may be cropped for stylistic purposes.
If incorporating text, use large font sizes, and keep the graphic simple, as this graphic may be scaled down from its original size.
This graphic may be displayed alone without the app icon.
Video Link (Optional):
Specs: Enter the URL to a YouTube video showcasing your app.
Tip:
Short videos (30 seconds - 2 minutes) highlighting the top features of your app work best.