iPhone Video Recorder by DreamCatcher is an app which records video and audio, and your file in mpeg4 format. The good thing is that developers acknowledged the limitations of the iPhone and implemented the ability to do the encoding while you are filming, or when the device is idle. This reduces stress on iPhone CPU.
One hour of video takes approximately 60mb. You can record videos up to 15 frames per second.
You can go here to download the free trial here, or buy it for $19.95 if it meets your needs.
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