That's right, 480 x 320-pixel video recording at 30fps is now go. The homebrew software is only an alpha (so there's bugs like not being able to preview what you're recording), but the app works, and is free to download.
When WebOS 1.3.1 skipped updating the camera app, the developers of Precorder decided not to wait any longer, and things are looking promising. The app supports MPEG-4, H.263, and H.264/AVC video recording, lets you control the flash, and videos can be played back in the Pre's video player. Again, it's alpha software, so try with caution. But you can check it out at: [Precorder via Pre Central]