Facebook updated its iPhone app this weekend, adding the ability to play Facebook videos directly on the phone. Previously you were able to click links for YouTube videos on Facebook and watch them using the iPhones YouTube app, however videos that were uploaded directly to Facebook could not be seen.
Other improvements in this release include a new 720px width for uploaded pictures, and the ability to write on the wall of events.
The Facebook iPhone app upgrade is available now for free in the iPhone app store.