Take a close look at the iPhone 3GS camera and compare it to the iPhone 3G. It has many advantages, including the ability to record video. It can act as a replacement for both a compact still camera and a mini camcorder.
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That was great info, Gary. Thanks!
The original iPhone and iPhone 3G can record video at 320x240 15FPS. Isn't the greatest but it's definitely decent. Audio is good too. Of course this all requires a jailbreak :).
PS: Install the WP-Touch plugin please!