Check out this video demo for ReelDirector (App Store link) – a $7.99 video editing application for the iPhone 3GS.

ReelDirector features a drag-and-drop timeline, 27 video transitions and 4 text styles at 9 positions.

This takes mobile video to another level. Just amazing.

Details below.

Features:

• Add and stitch together clips, drag-and-drop to rearrange order.
• Add text watermarks of title, opening credits and closing credits with 4 styles and 9 positions to choose from.
• Put transitions between clips to smooth or blend the change from one scene to another. With 27 transitions to choose from, create professional looking videos with ease and fun.
• Share your movies by email or save to Camera Roll.

Here’s a review/overview of ReelDirector:

via SteveRubel