In order to do usability testing I'd like to record an iPhone's display along with every user action. I can't modify the application itself however jailbreaking the phone wouldn't be a problem.
Ideally I'd like to get a full resolution video of the screen display with an overlay showing touch events on top of it.
For now the best solution I've found is using a video-out cable and record its output, but with this solution I'd need an external camera to capture what the user was doing and it wouldn't be very precise.
Other ideas?
The application display recorder, found in the big boss repo (cydia) works very well for this.