The live streaming video site Ustream has just launched its iPhone application into Apple's App Store. This comes just in time for people to watch President Obama's inauguration on their iPhones live today. It looks like the app works great for now. However, the streaming video will only work over Wi-Fi connections, and not 3G.

This limitation is found in other video streaming apps, such as Joost. Videos can be easily shared, with only one click, and a user can also search live streams and view upcoming ones. In addition, for videos with chatroom functionality, you can chat from within the app, but you will have to login with a Ustream account in order to do that.

Even if there had been some speculation that this app will be the first in the App Store to allow a user to stream video live from his iPhone, it appears the ones who thought that were wrong. Apple is not yet allowing apps that record video into the App Store, and we can easily observe that, because a version of Qik has the desired functionality, but it has not been allowed.

The Ustream Viewing Application is a free download and everyone can find at Apple's iTunes site. Users' comments reveal that the app has a solid audio, a good picture quality, but a low frame rate, but nothing to worry.

As previously mentioned, the new app boasts a live interactive chat feature that allows Ustream.tv users to chat about the show they are watching. Furthermore, Ustream told its users to stay tuned for further developments, so we should expect an update that enables viewing over 3G data connections.