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Dazzling Flashlight 4g is one of several new applications (like this one) that uses the iPhone 4’s new built-in rear LED as a flashlight.Cramzy developer Iliya Yordanov was kind enough to send over a build of the app for me to test while the product waits on Apple review.

As the video here shows, Dazzling Flashlight 4g offers two kinds of flashlight functionality. It provides the standard “light up the main screen with a bright, white window” that has been on App Store from the beginning — but it also offers direct control over the back LED flashlight as well. That LED provides strong, clear illumination and is really a nice way to shine light in dark rooms or at night.

For those who are curious, I did test to see what happened when the application moved into the background when hitting the iPhone 4’s home button. The light does switch off in this version. I thought that was a pity because it would be lovely if the light could be switched on and you could use other apps with that light there, switching it off only when you are done with it. Yordanov tells me that is a feature they’re considering for a future update.

It’s likely that Dazzling Flashlight 4g will be a bit of a battery killer. I did not have enough of an opportunity to test it for extended periods, but given that the rear light only works when the app is in the foreground, you’re unlikely to run against battery issues with this release since it only runs for a short while.

Yordanov states that Cramzy plans to charge US$0.99 for the application once it gets approved.