Apple has approved Ustream Live Broadcaster [iTunes link] which offers users the ability to stream live video directly from their iPhones via Wi-Fi and 3G.

While one of the key features of the iPhone 3GS was video recording capabilities, that was limited to recordings that were captured on your device and could be uploaded to the web after they were done recording. With the Ustream Live Broadcaster, you can easily record videos right to the web, and allow others to watch them as they’re being recorded. These videos can also be archived so that people can watch them later, if they choose.

The application also offers a number of other features, including Twitter, Facebook, and YouTube integration, viewer chatting and polling, and geolocation.

Ustream Live Broadcaster [iTunes link] is absolutely free and is available in the AppStore [iTunes link]