Thanks for the demo video. Just to let you know, I also have a remote ipad/iphone camera app in the store that turns your iphone into a remote camera for the ipad. The apps are named PicRemote and PicRemoteX.
My app supports iphone 3g as well and it is free. I’ll be adding many more features in the future to polish it up as well and I will always keep it free and will never have any ads in it.
I have a blog post with a demo video and app store links here: