I don't mean with the camera, I mean like say you want to record a game session on your iphone so you can save it to your PC and upload to youtube... does any exist?
is your iPhone jailbraked? then maybe... if you have a "normal" iPhone there is now app like the one you are searching for... you may know this, but you can take screenshots by holding the "powerbutton" and then rapidly press the "home" button two times...
My god people!!!! To take a screen shot all you have to do is push the home button and power button at the same time All you people that keep giving poor information should be band from the forums because it's a growing plague that is very annoying.
It will never come out on non-jail broken iphone. Apple doesn't allow more than one 3rd party software to run at the same time. So unless Apple provides it (very unlikely) or the app itself has the capability built-in (even more unlikely), you will not see it.
Perhaps, will have it in 2020. As Apple adds a feature or perhaps two every year that means that we'll copy paste by 2010. No wait, copy on 2010 and paste in 2011. MMS in 2012...etc