This is a rather stunning turnaround from just weeks ago when Apple did not allow any live streaming of video from the iPhone. This app supports the 3G and 3GS iPhones, and allows streaming over the 3G network and Wi-Fi. You can record the stream to your iPhone for a later upload, and it even works on 3G phones that don't have built-in video record capability.
The app allows you to share your recorded stream on YouTube, Twitter and Facebook and of course the Ustream site. You can relay your GPS location and your URL appears in the video so you can tell your friends how to find you. Finally, you can archive your broadcast to the web for later viewing.
To get it all going you must create a free account. I tried it this morning, and it worked on both 3G and Wi-Fi. I couldn't try the app on a 3G phone, but it is reported to work, giving that phone video capability in its unjailbroken state. Video resolution is 320 x 240 pixels, and can be lowered to 176 x 144. In my test, video and audio were lagging about 2-3 seconds, which is to be expected. There are ads on the Ustream web page, so that's where the money comes from to support this app.
I'm not sure what is causing the change of heart at Apple/AT&T about live streaming. It may be competition from other phones, or increased scrutiny from the FCC. I wonder if the Sling application will ever be fixed so it can use the 3G network? It seems they would have a good case.
It's great to see the iPhone finally get this capability. It's lagged behind some other smartphone platforms, but it is catching up rapidly -- so get the app, and become your own TV station.
Let us know in comments about your experiences, your likes and dislikes.