@Zeejaydee tweeted earlier that he was live streaming to Ustream using his iPhone 3G. It was pretty awesome, but even more awesome to know he did it using a new free app from Ustream.

This is a rather stunning turnaround from just weeks ago when Apple did not allow any live streaming of video from the iPhone. This app supports the 3G and 3GS iPhones, and allows streaming over the 3G network and Wi-Fi. You can record the stream to your iPhone for a later upload, and it even works on 3G phones that don’t have built-in video record capability.

The app allows you to share your recorded stream on YouTube, Twitter and Facebook and of course the Ustream site. You can relay your GPS location and your URL appears in the video so you can tell your friends how to find you. Finally, you can archive your broadcast to the web for later viewing.

I downloaded the free app, and in minutes I was live streaming my entire trip to my favorite Subway shop for a sandwich. The guys behind the counter even took the camera and showed everyone how clean the place is.

The ability to immediately alert people through Twitter and Facebook that you are about to go live from any given location holds a lot of potential. I can’t wait to see where this takes us.