Been playing around with 3.1, and while MMS messages won't actually send, you can still TRY to send them, which means inserting them in conversations locally. While playing around with this just to explore the interface, I 'sent' a video from my camera roll as an MMS. *The usual compressing status bar did it's work, but when I went to the convo in messages and played the compressed video, the difference in quality was far more pronounced than it is when compressed for YouTube or email. Examples: Original: http://yfrog.com/4c8zyj Compressed for MMS: http://yfrog.com/8cz4hj I suppose this is for two reasons, the first being that they want the files light for bandwidth purposes, and the second being to ensure smooth video playback on lower end and older handsets. *Just my own conjecture. *Also note that there is no 3G service where I live and I have the 3G radio toggle disabled to increase battery efficiency, perhaps when 3G is enabled it doesn't compress for MMS as badly? *Just a thought.