I couldn't find category on forum for 3rd party apps, so this is being posted here.
“vtap,” service lets you search for videos from around the Internet, then — get this — encodes them on the fly and puts them in a format that can be played on the iPhone (H.264). vtap searches YouTube, MySpace, Dailymotion, news sites like the Associated Press and Reuters, even ESPN. (Think SeeqPod but for videos)
In other words, it’s not constrained by the lack of Flash, Windows Media Player, etc. support on the iPhone. Virtually any video that can be found on the Web can now be played in the iPhone’s native QuickTime player thanks to on-the-fly encoding.
The interface is slick and fast, and there are some great touches. For instance, while the service is encoding a video on the fly, vtap will show you an RSS feed of recent news.
Navigate to http://www.vtap.com on your iPhone to give it a shot.