Go check out the new iPhone Video Recorder over at MyTriniPhone.com. It is pretty nice, but for the full licensed version, you will have to purchase. To test it out, you will be able to record about 30 seconds of footage.
iPhone Video Recorder Version 1.1.6 – The first iphone video recorder with sound! This update includes – Audio bit Rate control, four image quality options, audio input amp and four different video size modes.
To install IPhone video Recorder add the following source to installer; http://www.iphone-recorder.com/install2