I bought the camera flash app the other day for $1.99 and it does pretty well. I took a photo in one of my extra bedrooms with mediocre light(1 60 watt light bulb from ceiling fan) and then another photo using the camera flash app with the same light. I was quite impressed. I was previously was using a Blackberry 8900 and it has camera flash. Using the iPhone 3GS without flash was hard to adjust to until I got the new app. Here are the pics to see what kind of difference it makes.
Before
After
Before
After
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