I recently travelled to Japan with a friend and forgot to take my compact digital camera which can record videos, and was upset to find that I wouldnt have a means to record my trip. I then remembererd that the iPhone 3Gs (which i have recently purchased) records video. I took around 150 short segmens of film to see what I could come up with when I got home and created this clip http://www.youtube.com/watch?v=M-SYuLjxovM as a demonstration. I used Final Cut and was extremely happy with the result. Though the video recording quality of the iPhone may not be quite as good as many other handsets available, I think my video proves that it can still be used effectively.