Do you want to be able to record video on your iPhone? Then you have to jailbreak your iPhone and in the Cydia application install, Cycorder:
Record at the maximum speed of the iPhone camera (6-15 frames per second, depending only on lighting conditions) with no compression delay between pressing stop and getting to view the resulting video.
Cycorder does MJPEG compression: the same as that used by most point and shoot digital cameras that also happen to support recording video.
Video files are recorded at 384×288, a 4×3 (television) aspect ratio.
Quality is noticeably higher than that of iPhone Video Recorder (which uses a very lossy compression algorithm at a low framerate in order to obtain its small video sizes).