Only iPhone 3GS is officially permitted to record video, edit video and sharing of video, but iPhone 2G and iPhone 3G couldn't record, share or edit video with out jailbreaking it and then installing an app named Cycorder which is programmed by Cydia.
Now, iPhone 2G and iPhone 3G can record, edit and share video without jailbreaking it because Apple has approved an app known as iVideoCamera on the iTunes App Store. The iVideoCamera app is somewhat similar to Cycorder and it allows you to record video from iPhone 2G and iPhone 3G.

The iVideoCamera app will work with iPhone 2G and iPhone 3G having OS 3.1 or above. This app has some limitations on the length of video recording, with this app you can only record a video of about one minute, it records video at 3 frames per second and at a resolution of 160x213.
The developers of iVideoCamera app are working on it to improve the quality and length of video recording and release the updated version. I think it will be much better to wait for the developers to release an updated version of this app and then buy it. This app is now available to purchase from Apple iTunes App Store for just $0.99.
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