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Mobile advertising firm AdMob today announced that it is launching interactive video advertising for the iPhone and iPod touch. The ads, which will be available as either auto-play or click-to-play implementations, will begin appearing in a limited number of top App Store applications.

Maybe there's still something to be said for jailbreaking after all. According to The Unofficial Apple Weblog, the following footage of SmartScreen, an app that lets you add and use widgets on your iPhone lock screen, has been released:

Acording to a forum post on Chinese site WeiPhone, the iPhone 3GS is capable of playing both 720p and 1080p video encoded in H.264 via a built-in video player. Since the 3GS won't normally play 1080p, this leads us to believe that it can and has simply been disabled by Apple to preserve battery life or make it more similar to previous iPhones.

A potential security hole in the iPhone OS 3.0 and 3.0.1 firmware has just surfaced via a YouTube video in which the host describes how, by searching for the title of a deleted message, the resulting screen displays two copies of the message; when either is selected for the first time, Mail crashes. According to MacNN, when the messages are selected a second time however, an iPhone will either display the original text, or a warning saying "This message cannot be displayed because of the way it is formatted."

Software developer TwitVid.com announced the release of TwitVid [App Store], the company's video sharing application for Apple's iPhone 3GS handset, on Monday.

TwitVid enables you to share videos you’ve created on your iPhone 3GS with your friends and contacts on Twitter. The application also works with Facebook, MySpace and YouTube and boasts an “AutoShare” feature.

Apple went a long way with improving camera quality on the iPhone 3GS, making it an impressive device for capturing video, but it's still a phone. As good as it is compared to a jailbroken 3G, it doesn't change the fact that the microphone is in a bad position, the camera is tiny, and it can be pretty shaky. To solve this problem, a young new start-up named OWLE (Optical Widgets For Life Enhancement) is making a 3rd party hardware accessory that enhances the 3GS's video capturing abilities.

I am still consistently amazed by what people are able to do with their iPhones, and I would have never thought it would be used to make a music video, but that's just what one upcoming artist did.

As we reported earlier from Macworld 2009, Freeverse is set to release a slot car racing game called SlotZ Racer. Today we received word from Freeverse that the game has been submitted to Apple for review, so it should be available soon. We still haven't heard about pricing, so we'll just have to wait until the app is approved.

In the meantime, check out the newly released track creation video as well as the gameplay video below.

The team behind The Pirate Bay, the largest BitTorrent tracker on the web, just released ViO, a free video converter that claims to be able to reduce AVI, MPEG, MP4, WMV and other file types to 20% of it's original file size without reducing the image quality, faster than any other converter. It's intended for reformatting video files for mobile devices like the iPhone and iPod touch.

Joost is a great online library of streaming video featuring more than 46,000 items to view, including 1,200 movies, individual 400 TV series, and 18,000 music videos that you can access right from your computer. Perhaps even cooler, though, is that now you can get it on your iPhone, too. They recently released an app into the App Store that lets you view their otherwise flash-only online video on the iPhone.