Even you have the latest iPhone 3G, default YouTube application only download the low quality video version that is almost unwatchable. There is no options to change it. You can only watch high quality video with Wi-Fi.

To watch high quality video,  we had MxTube in old firmware 1.1.4. MxTube is now updated to 1.5a and supports the latest firmware 2.0. You can now watch high quality YouTube video over the 3G data (or EDGE).

More after the break.

To install MxTube, you need to jailbreak the iPhone 2G or 3G first. Then, run Cydia, find MxTube to install it. Then, you will be able to see the MxTube icon on springboard.

Run it and search the video you want to watch. Currently, you can only choose “YouTube Mobile” edition. But, you can watch all the videos available in iPhone’s default YouTube app. Click the blue arrow of the result, and you will see something similar below. Scroll down to watch the video over the stream with high or low quality.

If you want to keep the video, click “high” or “low” under “Download”. I have tried to download high quality video over 3G data connection, and it is successful. That means you can watch or download high quality YouTube when there is a 3G network connection. Better and easier than that of using the Wi-Fi network.

Downloaded video can be found in “/var/mobile/Media/MxTube”. You can access the data after you have installed openSSH.