This is pretty incredibleIF true.
iPhone 3GS user KhenaKara accidentally dropped his iPhone 3GS into a pool while video recording and amazingly it kept recording.
Since he was recording you can watch the whole experience in the video below. Days after the event the phone still works fine.
It seems Apple may have taken some steps to make the device more watertight. A friend dropped my iPhone 2G in a puddle and it stopped functioning immediately.
Also, the mic kept working as well. Even the autofocus and the light adjustments were working at the bottom of the pool. You know what they say"Don't try this at home". Drop happens about half way through the clip.