The geniuses from Monster and Friends have created an iPhone application which can record video up to 45 frames per second. They are still working in the final version, but to give you a taste they have published Drunknbass, a beta which records 5 seconds of video at 10 fps with a resolution of 2 megapixels. I've tested and it works perfectly. It doesn't have any interface, so you just download it, put it in your iPhone's Applications folder, click on the button and it will start recording. When Drunknbass is finished with the five seconds recording it will replay the clip once. The final application will be able to record unlimited-sized clips (only constrained by your available space) up to 30 frames per second and it will have an interface to save your clips (they are looking for developers to help with the graphical side of the software).
This is good for three things: first, because this confirms that video recording works great on the iPhone and we will probably see this officially from Apple, as rumored, in a future update. Second, because it confirms there are no limits that third-party developers can't overcome.