Who hasn't encountered frustration using Captchas?

Designed to defeat automated software attacks, Captchas can also defeat humans as we struggle to decipher the distorted text (the distortion prevents OCR software from correctly reading the text).
The example above is from the New York Times. Other, simpler Captchas can be found on lower-traffic sites. Simpler approaches, however, are more easily defeated. For example, it wouldn't take much software logic to defeat the Captcha on UIE's site (type "uie"):
Slightly more complex is this image-based Captcha:
Again, on this relatively low-traffic site this approach is likely effective at preventing attacks--but it is not impervious to image-recognition software.
A more sophisticated image-based Captcha, developed at Penn State, obscures the image, retaining key details so humans can recognize it but software can't:

The researchers developed this system in response to ease with which many distorted-text Captchas can be broken by more sophisticated means. While they admit their image-based system is not foolproof, the image distortions, which are made on-the-fly, have proven difficult to crack in their testing.
It's notable, however, that ReCaptcha (shown in the first example) has a dual purpose. Its Captcha function is a part of book digitizing efforts. From Wikipedia:
Scanned text is subjected to analysis by two different optical recognition programs; in cases where the programs disagree, the questionable word is converted into a CAPTCHA. The word is displayed along with a control word already known. The system assumes that if the human types the control word correctly, the questionable word is also correct. The identification performed by each OCR program is given a value of 0.5 points, and each interpretation by a human is given a full point. Once a given identification hits 2.5 votes, the word is considered called. Those words that are consistently given a single identity by human judges are recycled as control words.
ReCaptcha is one of the most widely-used Captcha systems, deployed by Facebook, Twitter, Craigslist, and many others.