
The update only works on the new iPhone iOS4.1 software. But here's a bonus, it also works on the new iPod Touch, which and front and back cameras. Here are the details of the uipdate:
• Compatible with iPod touch (4th generation).
• Ability to split video clips.
• Automatic music looping when video extends beyond music track.
• Scrub to preview clips in Video Browser.
• In-app Tips page that illustrates how to use key features.
• Updated Photos Browser with newest images at top.
• Mute badge to indicate video clips with audio disabled.
• Additional performance and reliability improvements.
If you already bought iMovie, it's a free upgrade. Otherwise it's $2.99 and here's the link.
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