Do you want to record the activity of your iPhone Display? Well, You can easily record the iPhone Display activity by using a jailbreak tweak available in Cydia. The name of this tweak is Display Recorder. After you have installed this tweak on your jailbroken iPhone you will be able to record the activity of your iPhone Display and then save the video as .avi files. Then you can share it with your friend via Youtube within the app. Simply go to the Settings.app of your iPhone in order to enable OpenGL capture, adjust the framerate, setup custom activation gestures, enable taps, choose video quality and orientation.
Display Recorder is available in Cydia at a price of $4.99 USD. You should note that you will need to have a jailbroken iPhone in order to install this tweak. If you don’t have jailbroken iPhone then you can follow the step by step instructions posted here to jailbreak your iPhone on iOS 4.2.1 with Redsn0w.