Sorry to hijack your thread, but I have a similar problem and didn't see the need to start another thread. I too need to record gameplay.
The problem I have is that my game uses the accelerometer to control the character and so capturing the simulator screen is not really suitable as there is no way to simulate tilting, and using a video camera gives rather poor results.
I did try Acc-Sim (details here :
Brian Pratt's Homepage - AccSim iPhone App) , which is an opensource project that allows you to control the accelerometer values in real time on your device while the game plays out on the simulator but unfortunately, while this worked, the movement of the character was far too jerky and so this method was unusable too
If anyone has any other ideas on how to capture gameplay on an iPhone with a game that requires an accelerometer, I would really appreciate your input. Perhaps video camera is the only way.
Many thanks,
Dave.