Not only is Ustream debuting a video watching app for the iPhone, they've got a video recording/streaming version on the way as well.

Their CEO demoed the app to Techcrunch, which is currently waiting for Apple's approval. No other app, including ones by Apple, has been able to shoot video on the iPhone without being jailbroken, so this would be the first.

We're not sure when the watching app is going to be approved—the one they're advertising that you can watch the Obama inauguration with—but they'd better hurry. [Techcrunch]