There has been quite a bit of excitement over the last few weeks with the announcement that Ustream would be offering a live video viewer so people could watch the Obama inauguration on their iPhones and iPod touches. It didn't look like it was going to make it, but the free application [app store link] slipped into iTunes today with just hours to spare. While the Joost app should also allow streaming of the festivities, the Ustream viewer is unique because it allows live TV streams, and registered viewers can join a chat room creating a community around any video stream.

Video can be viewed horizontally or vertically, but many of the sources are not 16 by 9 so it won't make a great deal of difference. The app appears to be WiFi only, which is a bit of a drag. My cell reception here in the wilds of Arizona is not too great, but I got an error message trying to run the video streaming under 3G.

With WiFi most of the channels looked pretty good. I even got a quick look at Chris Pirillo doing his live bit from his desk at home. The real test will be tomorrow with the swearing in ceremonies. It will be a good test of the Ustream distribution system.

Ustream wants lots of players out there, because they are creating a content network and are actively courting people who will create videos on their home computers and laptops. The firm says they will soon have an app that allows live streaming of video and audio from the iPhone, in the same vein as the Qik tool currently running on jailbroken phones. If so, that will be a very big game changer for the iPhone. The big question is, will Apple allow it into the app store?

Looking toward the future, Ustream will need more and better content deals, and streaming via the 3G network. Tonight is a great first step, and I expect by swearing-in time a lot of iPhones will be tuned in, if you'll pardon the archaic term.

Here are some screen shots hot off the presses (thanks AppleUniverse):