Popular video-sharing site Vimeo finally released an official app for the iPhone/iPod touch in the App Store. The app is absolutely free and packed full of functionality, including the ability to upload media directly from the iPhone to its service.

A quick survey of the app’s features shows that a lot of time and energy went into creating this masterpiece. Sure, other sites let you upload video from your handset, but Vimeo’s process is more detailed. It is a full-featured video editor that allows you to record and edit new material on the fly, including the ability to add transitions, titles, and audio.

Each new video (whether recorded directly from the app itself, or taken from your camera roll) can be sent to Vimeo in HD, Standard, or Low Quality. Once the import begins, you can pause it, which is a great feature if you happen to leave a Wi-Fi network and switch over to 3G.

The “My Stuff” tab combines your video inbox, videos you want to watch later, and whatever videos you’ve “liked” in the past. Since the app is fully integrated with the Vimeo website itself, this is great way to review videos you found interesting surfing the web earlier in the day and now want to watch on your iPhone.

“Browse” lets you view videos from pre-determined categories. For example, from here you can access Staff Picks, HD Videos, or Everything Animated, just to name three examples.

Finally, the “Account” tab keeps track of your weekly upload limits, video statistics, and information on the Vimeo Plus service.

Overall, the Vimeo app is quite remarkable. It includes a terrific UI and is a pleasure to use, which cannot be said about all apps. However, it does lag at times, especially when uploading a video even through Wi-Fi. Compared to Apple’s own iMovie app, this difference is noticeable.

But, from day one, the Vimeo app comes highly recommended and is a welcomed addition to the App Store.