One feature that ranks up there on most people's iPhone wishlist (somewhere between Copy and Paste and MMS) is video recording. Now there are two options for recording video on the iPhone – the only caveat is that you have to jailbreak your iPhone to use them.
iSmashphone posted a review of the two video recording apps, Cycorder (free) and Video Recorder (US$20).
Cycorder features real-time compression but doesn't have audio recording. Video Recorder features audio, portrait mode and YouTube sharing but no real-time compression ("it took over 2 minutes to encode a 30-second video.")
Screen shots and video samples are at iSmashphone.com.