I own Xperia mini Pro with Android 2.1-update1. I noticed that my mobile Camera is not allowing me to pause and record the video. I had to record the video continuously without any pause. I know this is little annoying me. And I started searching for video applications which can do this job.
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This seems to be a limitation of either the Xperia mini Pro Camera software or the hardware itself. The camera that came with the Stock Samsung Galaxy S Vibrant (SGH-T959) I could pause and resume recording of video. I am now running CyanogenMOD on the device, and I can also pause and resume recording.
So either the developers did not want to include that functionality in the camera software, or the hardware has something that prevents them from allowing it.