PhonoCam is a camera application which records sounds from the environment together with a photograph. It records audio for a set amount of time (between 2 seconds to unlimited) until the photograph is captured. After copying files to iTunes via Wi-Fi, images are displayed as album cover artwork and can be browsed together with sounds using iTunes CoverFlow.
Here is a video demo of what PhonoCam for iPHone can record
This 3rd Party App is available at the Apple iTunes AppStore. Browse the full list of all AppStore apps filed under the AppStore category.