Francis Bonnin has Video 2 Photo – extract still pictures from movies (iTunes Link) for the iPhone and iPod Touch in the iTunes App Store for FREE (regularly $1.99) for a limited time.

Video 2 Photo allows you to export one or more photos from your videos in a quick, fun and original way.

Videos can be imported from the camera roll of your iDevice. Events and Albums are recognized. You can also connect your iDevice to iTunes in order to drag and drop other videos (iTunes file sharing feature). The camera can be used directly to record a video in order to extract the images quickly thereafter.

An animated and original interface allows you to select a picture from all the ones contained in the video. It is also possible to view the video (possibly in full screen) and to directly target a specific time.