A new app called Motion Pictures was released two days ago. It is a very simple app that lets you create time-lapse movies, and it is free.
You basically choose the number of frames, time between frames, etc. You can stop the recording at any time.
You can grab it on iTunes.
I walked to work with this app running this morning. The snapshots were 1 second apart. As you can tell, it was handheld, and I was also arguing with my umbrella that wanted to travel with the wind. This is my 4 minute walk in a mere 27 seconds. Don’t get dizzy.