Update (12/2/2009): The app is not crashing today, search friends is working, but it says, that my friend who lives in Sunnyvale, CA is in Michigan... :( I have sent the invitation, let's see what happens. No response, the app said my friend hasn't responded, but he didn't get the invitation.
I wonder if your friend has to have the app open to get the invitation to share the video.
No, it doesn't work when you are either on the app or not. I will be back with updates!
This is a very cool idea for an app, and I will use it with my friends when they are far away to see what they are doing.
I have it installed now on my iPhone, and I was able to register and send email invitation to some of my friends (via email). I need to have friends using it to test it. Well, none of the 3 friends I have sent the email to have received it, and I haven't received a sign up confirmation email either.
On of my friends has installed it now after I have contacted him through IM, i think he has been able to register too, but the app is crashing every time I try to open it ...BUMMER!