I've shot timelapse video with a video camera on a few occasions and got some really cool stuff. Lately, I've been experimenting with TLV using a Digital Still Camera. Here's a vid by Zach Wise on how to shoot time lapse video with a still camera.
*Note: From my own experiments, I'd like to add these additions to Zach's information.
1. If you have After Effects or another advanced software, you can easily import your photo sequences in as 'JPEG' sequences. Same rules apply concerning the correct numbering as importing with QT Pro.
2. 'Drag Your Shutter' means use a slower shutter speed than the camera would use automatically. A slower shutter speed will allow your subjects to appear to 'smear' (i.e. 'drag) themselves through your image vs 'Blipping'.
3. When going from Day to Night you'll have to use Auto White Balance particularly if there is man-made lighting present in the scene. When shooting Day or Night only you can get away with Manual White Balance long as lighting conditions don't change too dramatically.
4. You do not have to spend a bunch of money on a Timer Remote/Intervalometer! The one's made by your camera's manufacturer get pretty expensive and they do the exact same thing as much cheaper off-brand one's do with less features (like say an 'on-off switch'?)
5. Lastly, be prepared to either stay with your camera for at least an hour or more while it does it's thing. That or hide it really, really well! Time Lapse shooting is a long-haul endeavor.