Apple has also announced a new iMovie application that will allow enhanced video editing. The app is set to cost $4.99. It makes the most out of multi-touch enabling you to easily select clips, add coordinated titles and transitions, add a soundtrack, add photos to your movies, and export the project in one of three sizes: Medium (640 by 360), Large (960 by 540), or HD (1280 by 720). You can share the video in an email or MMS message, on the web, in a MobileMe gallery, or on YouTube.

Unfortunately, the iPhone 4 is not capable of playing back HD video but only supports 1024 by 768 pixels with Dock Connector to VGA Adapter; 576p and 480p with Apple Component AV Cable; and 576i and 480i with Apple Composite AV Cable

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