Okay, There's a few Video Camera Apps available on the iTunes music store that gives you the ability to record video on the iPhone 2G and 3G models. I decided to put the two I found best to the a head to head competition. The 2 apps are iCamcorder for iPhone 2G/3G now with Zoom and Effects! and Qik VideoCamera - 15 FPS, Zoom+Effects! Both are .99 cents on the app store.
Effects: iCamcorder offers Greyscale, Old Movie, Invert Colers, Motion Trails, and Bloom. However you can't see the effects in real time while you are recording. Qik offers Black and White, B&W and Red, Mirror Horzontal, Mirror Vertical, Color Game. I like the available effects of Qik better then with iCamcorder. Qik also lets you view your effects in real time!
Zoom: iCamcorder offers a zoom button that can be pressed after you hit record allowing 1x, 2x, and 4 x. Qik offers a slider for the zoom which is accessed in real time offering 1x, 2x, 4x, and 8x.
Other Quarks: iCamcorder lets you toggler on/off Resolution, Quality, and Record Audio. Which lets you have a better frame rate with more things switched to off. I found that the video's were useless with anything switched off. Qik gives you a slider for a flash which gives the video more or less exposure.
Frame Rate: I tested this by recording a Frame Rate Video on my screen with the apps. With an advertised 15 Frame Rates per second from Qik, it seemed to me that iCamcorder had a better recording since the line running through on the video stayed pretty close together while the line from the Qik recording moved apart so much to where you can see 3 lines at the same time from the one scan line.
Overview: The Qik apps easily takes the win with 3 out of 4 points. However if you plan to record just basic video's in good lighting, iCamcorder seems to have a better Frame rate.
I'll keep both apps on my phone for now and keep you updated on which one gets the boot. =)