iPhone Video Recorder (for 2G and 3G iPhone)
iPhone Video Recorder (for 2G and 3G iPhone) is a powerful iPhone oriented video recorder produced by DreamCatcher. The newly released iPhone Video Recorder version 3.0 supports on-the-fly (real time)recording to mov file with the video quality improved dramatically.
This newly iPhone Video Recorder (for 2G and 3G iPhone) can also record audio and video to the compressed mpeg4 format with frame rate up to 15fps which guarantees better recording for space saving, an-hour-high-quality recording will be a file as small as 60MB. 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.
So amazing! You can buy it now or refer the following guide to install this recorder and start recording.
Only $19.95 
Download
(This is PXL package download; Run on iPhone not Windows)
How to install iPhone Video Recorder(for 2G and 3G iPhone)
Install iPhone Video Recorder for 3G (2.x iPhone)
Requirements:
You need a jailbroken iPhone with firmware 2.X (instructions can be found in a lot forums in the net)
You need a SSH server running on it. The most common is openSSH and it can be found on Cydia.
Install Method 1: Cydia method
1) Please add iPhone Video Recorder source "http://www.iphonevideorecorder.com" to your Cydia source, and install it.
2) Reboot your iPhone.
Install Method 2: Installer method
1) Please add iPhone Video Recorder source "http://www.iphonevideorecorder.com/installer" to your installer, and install it.
2) Reboot your iPhone.
Install iPhone Video Recorder for old iPhone (1.x.x iPhone)
To install this application on your iPhone, you must know how to jail-break the iPhone and install the software needed. The following sites provides excellent information on this topic.
http://www.hacktheiphone.com/
http://hackint0sh.org/forum/showthread.php?t=3284
Install Method 1: installer.app method
Please add iPhone Video Recorder source http://www.iphonevideorecorder.com/install to your iPhone installer.
How-To: Add third-party sources to your iPhone's Installer.app
iPhone Video Recorder Source: http://www.iphonevideorecorder.com/install
After refresh your installer source, you will find iPhone Video Recorder in Multimedia category, install it.
Install Method 2: PXL package method
Download the PXL package below and use with Breezy (mac), iBrickr (windows) or using the PXL MobileSafari plug in to install it.
Download iphonevideorecorder.pxl (510KB)
http://www.iphone-recorder.com/iphonevideorecorder.pxl
Supports firmware 1.0.x, 1.1.x (All known versions) iPhone.