The ARM Cortex processor on iPhone 3GS is apparently capable of handling 720p video encoding, it is just that Apple has imposed some limitation in the software which Mike has successfully managed to bypass to allow video recording at 1080×800 @ 30fps at up to 20Mbps. The default settings for video recording on iPhone 3GS are: 640×480 @ 3Mbps.
[via: iPhoneBlogr]
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