One of the features that is missing from the FreeFlight software is the ability to take pictures or record the video stream from one of the two onboard cameras. This drone thing was supposed to bring Big Brother surveillance capabilities to the masses, wasn’t it? The video stream for the front and bottom camera is displayed on the iPhone screen but there is no way you can record it. Not unless you jailbreak your iPhone and install Display Recorder by Ryan Petrich ($4.99 in the Cydia store).
With Display Recorder installed you can record everything that is displayed on your iPhone screen. Once installed you start it by pressing the sleep button for 1 second. Display Record will ask you if you want to start recording. It will then record everything to an AVI-file until you press the sleep button again. After recording you can upload the video directly to YouTube from your phone or download the files to your computer through a integrated webserver that you can turn on in Display Recorder.
If you want to record the video from the cameras on the AR.Drone you will have to change Rotation to Landscape Left or Landscape Right in the Display Recorder setting. Display Recorder settings can be found as an option in Settings on your iOS device. Other things you probably want to change are to not Show Taps and perhaps use a higher Video Quality.