What are the pedagogical and institutional implications of implementing a Lecture Capture system?
I was involved in the installation of lecture capture systems in many of the classrooms on our campus with funding from a grant from the US Department of Education.  Overall, this has been a very positive addition, and both students and faculty seem to be happy that we've introduced the technology.  However, there were and are some concerns.

Student concerns.  The lecture capture system records in-class discussion.  Some students have been concerned about their privacy, but a policy that the lecture capture recordings will only be used for the current system and be made available only to students in the class takes care of most of this concern.  A related privacy issue is that instructors should be careful not to have sensitive discussions with students (e.g. about grades, absences from class, etc.) while the system is turned on- this could easily lead to FERPA violations.  

Faculty concerns.  Some faculty were concerned that students would stop attending class if recordings were available.  Our experience has been that having lecture capture recordings available to students has little or no effect on attendance.  Faculty have also been concerned that the recordings would be used in ways that they didn't approve of (e.g. for administrative evaluation of teaching or to offer the course to other students without paying the faculty member to teach the course.)  You should have clear policies in place to address these concerns.  

A major faculty concern had to do with how they present written content in the lecture.  For practical reasons, video recordings of material written on a blackboard (with chalk) or a whiteboard (with dry erase markers) simply don't work well with lecture capture systems.  Some faculty simply use prepared slides for their lectures.  An alternative (the one that I use) is to write the lecture material on a tablet or digitizing display.  Some folks use a document camera and write notes on pieces of paper that are displayed by the document camera.  

Distance ed concerns.  Instructors and students can use lecture capture recordings as an informal way to have distance education courses without official permission.  This might not be acceptable to your administration or your accrediting body (or the US DoED- such a course would count as a "correspondence course" because of the lack of two regularly scheduled two way interaction with the student) but there's no good technical way to prevent it from happening.