When iOS 4.2.1 came out on November 22nd, several users were disappointed to find out that there was no AirPlay option in the iPhone’s Camera Roll or Photos app. If you have some videos shot with your iPhone and you want to stream them to the new Apple TV, you’ll have to import them into iTunes on your computer first, then sync them back to the iPhone.
There’s no direct Camera Roll -> Apple TV streaming option, and as Daring Fireball’s John Gruber wrote weeks ago, this might be because of the different bitrate of high-def videos recorded on the iPhone. Read more