Software to record videos on iphone that doesn't result on video sizes of tremendous sizes
This is what I do.

I use the VLC player almost exclusively since it can play anything.

Since you want to save space and eventually download to youtube I would recommend a 2 step process.

First record it in high quality.

Then use a small app called Flv Crunch to convert "any" file format to flv type that is enormous size reduction and compatible with youtube.

It is very easy to use and control the settings.



Convert files between flv, mpeg 1/2/4, 3gp, mp3, m4a, wmv, wma, avi, mkv, aiff, and others.

Then delete the original (ok that was 3 steps :)

why do it this way?

I learned the hard way that once the event is over you are stuck with what ever quality you used to record. Thus I recommend you always record in high quality, since it is easy to reduce the file size to quality you want as end product.

For example you recorded something that needs to be magnified or altered for clarity, that would not be possible any more if recording in low quality.

About Flash Video Format:


  FLV files are videos that are encoded by Adobe Flash software. They
  can be played via the Adobe Flash Player, web browser plugins or one
  of several third party programs. Since virtually everyone has the
  player installed on their browsers, it has become the most common
  online video viewing platform used on the Web today. As almost all
  video sharing sites such as Youtube stream videos in Flash,
  practically all browsers support and are compatible with the Flash
  Video format and can play the video with ease. In addition to being an
  online video viewing format, the Flash Video format is also what many
  video-sharing sites convert videos to, from formats that were uploaded
  by their users in something other than Flash. 
  
  This is because videos in the FLV format remain in high quality even
  after compression to a smaller file size, which means that the videos
  on the Web load quickly and won’t spend a lot of time using up
  bandwidth. 
  
  Some notable users of the Flash Video are Youtube, Yahoo! Video, VEVO,
  Hulu and Myspace among many others.