iVideoCamera is an app for the iPhone which provides previously unable 2G and 3G iPhones the ability to record videos.
Personally I think they should have been updated free of charge to allow video recording, but you can't have everything.
The app is simple and easy to use and does exactly what you would expect - takes videos. You can also record using special effects, which is a nice addition.
The quality of the videos is quite good considering the mediocre 2MP camera on the 3G (that's what I have and use this on). You can record in either 'low quality' or 'high quality'. Without exporting to my PC I would have to say I can't see much of a difference.
A 4x zoom is also provided. The quality when zoomed isn't great, with quite a lot of jagged edges, but it's better than nothing I suppose.
The only complaint I would have about this app is the time it takes to save. For a 10 second recording it takes maybe somewhere between 5 and 10 seconds to save to your camera roll.
For £0.59 this is definitely one app you must buy, since it doesn't look like Apple will be upgrading the software to enable video recording.