Doodle Cam is a free iPhone app that can create videos and still photos that look like pencil drawn pictures.
It features 11 effects that range from the simple line and grayscale image seen here to full-color and false-color images and videos. You can preview both photos and videos in real time to help your composition. It can use both the rear and front-facing camera on the iPhone 4. Although the app is not a universal one, it can be used with an iPad 2 in screen doubling viewing mode. Note that the iPad 2 does not have a high resolution rear camera like iPhones do.
Still and video doodles can be shared via email, Twitter, Facebook and YouTube. They can also be stored locally to the iPhone’s photo album.
Taking photos and recording videos in these “hand drawn” looking modes is surprisingly entertaining. I have to agree with the (so far) 5-star average customer rating this app has earned on its iTune App Store product page. Doodle Cam