Air Video is one of our favorite iOS apps here at MacStories. Not only does the app come with a nice icon and polished interface, the real deal's about the functionality: Air Video allows you to effortlessly stream any video from your computer to the iPhone or iPad -- even with live conversion. No matter the format, no matter how big the file is (seriously, you can try with music videos or 3GB movie files), Air Video will stream to iOS just fine.
An update to the app was released yesterday, and it's a pretty sweet update: Air Video 2.4.2 now comes with Retina Display-ready graphics, support for iOS 4.2 multitasking, performance improvements and enhanced file sorting capabilities.
An already must-have app basically got a lot better with these new features, so if you still don't own Air Video, go buy it right now in the App Store at $2.99. Also, check out a video below of Erica Sadun from TUAW demoing a custom version of Air Video with AirPlay support. We can't wait for Apple to open up its APIs and allow third-party apps like Air Video to stream to the Apple TV.