i took some test video today outside with the front cam. I was walking outside, and the wind was really kicking up. I actually couldn't really hear myself talking all that well while I was walking. The wind was pretty much blowing right opposite the direction I was walking, meaning it was hitting the mic head on, and I'm very surprised at how the audio turned out. I honestly wasn't talking very loud either, as there were other people walking around and I didn't want them to think I was crazy talking to my iPod. 
video...
http://www.youtube.com/watch?v=SAiPlmd2X3c
my first time editing in iMovie on the touch as well. Not sure why it squares off the video, but the sound is the important feature of the video. but i think it also shows off the quality of the video on the front cam too, even though it's not natively 720p.
video...
http://www.youtube.com/watch?v=SAiPlmd2X3c
my first time editing in iMovie on the touch as well. Not sure why it squares off the video, but the sound is the important feature of the video. but i think it also shows off the quality of the video on the front cam too, even though it's not natively 720p.