Developer: Animoto, Inc.
Price: free Download on the App Store
Select photos from your camera roll, select a genre of music (pop, hip hop, Latin, jazz, you name it) and then select a song. You'll have the chance to preview your song before making your final selection.
Automatically put together the photos and music you chose by tapping the "Create Video" button and wait for your compilation to render. When that part is completed, you'll have is a professional-looking video. Technically, it's a highly animated slide show but the words don't do the results enough justice. Take a look at this sample video of Animoto and you'll see what I mean.
With Animoto you also have the option of emailing your compilation, renaming it, remixing it (the app creates a new video using the same images and soundtrack) and editing your images or soundtrack.
Running Animoto and creating these mini-video shows pushes the iPhone's processor to the limits. At the moment, you can't use more than 16 images and Animoto takes at least 10 minutes to render a compilation.
If RightSprite could better optimize Animoto for the iPhone, make it possible to create compilations using more than 16 images, and may be add a couple of other features, the company would really be on to something.
In the mean time, have some fun. After all Animoto is free.