It has been discovered that the latest beta of iPhone OS 3.0 contains all the elements required to allow video recording on the iPhone.

Firstly Mac Rumors points out that developers who have been digging around in the iPhone OS 3.0 software found an interface offering the ability to switch between taking photos and recording video.
iPhone Video Recording
Additionally Boy Genius Report shows separate sections of the OS which would presumably be where recorded videos are stored, the empty area reads “You can take videos using the camera.” Of note BGR adds that Apple could make video recording only available on the new iPhone hardware.
iPhone Video Recordings
On top of the discoveries of video recording capabilities in iPhone OS 3.0, Mac Rumors and BGR add that mentions to “Voice Control” are present in the recent beta. This feature is speculated to include voice dialling.
iPhone Voice Control