The first iPhone Video recording application, made by DreamCatcher, was released Today for the iPhone 3G. It is $19.95 and can record with full audio and video. It can record up to 15 FPS, and you can upload directly to YouTube, or send out as an email. This was previously released under the 1.1.4 Firmware, but now has been ported to 2.X.
iPhone Video Recorder (for 2G and 3G iPhone) is a powerful iPhone oriented video recorder produced by DreamCatcher. iPhone Video Recorder records audio and video to the compressed mpeg4 format, so the recording is space saving, an-hour-high-quality recording will be a file as small as 60MB. iPhone Video Recorder boasts a frame rate up to 15fps which guarantees better recording performance . With iPhone Video Recorder, recording is easy and enjoyable, you may play back the video, download it to a computer, upload to Youtube, or send it out by email as you wish.
To install you can add the Cydia Source, http://www.iphonevideorecorder.com.