iBlackout is one of the slickest lighting apps and has a good range of options. There's the standard plain or colored flashlight, but no ability to customize the color. Or, choose "effect" for to get your light from a fancy screensaver pic of a light bulb, lightening or other light-related source.
Where this app really shines (pun intended) is in the party and torch options. Torch is the best set of flames to hit the iPhone. Next time you get involved in a gadget war just say that you have the "hottest phone around" then prove it with this little app.