[Xperia Z Themes and Apps] kgs1992:
You can capture video at 720p. Full HD is broken & I suspect it's because the bitrate might be too high.

EDIT: Sometimes it works, sometimes it doesn't.

Here's the tail of the logcat:

$ tail -f Cybershot_2.7.1_logcat.log
I/CNE_DEBUG( 623): CNE sendWwanStatus - type:10 strength:-77 ipV4Addr:42.107.6.68 roaming:1 iface:rmnet_usb0 timeStamp:2013-04-07 16:31:42.067
I/CNE_DEBUG( 623): UpdateWwanStatus type=10 state=1 rssi=-77 roaming=1 ipV4Addr=42.107.6.68 iface=rmnet_usb0 timeStamp=2013-04-07 16:31:42.067
I/libcamera( 311): Preview average frame rate : 29.7203 (fps)
D/PowerManagerService( 623): releaseWakeLock flags=0x1 tag=sendinactive
I/libcamera( 311): Preview average frame rate : 29.7443 (fps)
E/OMXCodec( 311): failed to allocate node OMX.ittiam.video.encoder.avc
W/StagefrightRecorder( 311): Failed to create the encoder
W/CameraService( 311): attempt to use a locked camera from a different process (old pid 311, new pid 5518)
E/MediaRecorder( 5518): start failed: -2147483648
I/Choreographer( 5518): Skipped 310 frames! The application may be doing too much work on its main thread.

This is all of the relevant bits I suppose:

E/MetadataRetrieverClient( 311): offset (0) bigger than file size (0)
E/SemcCameraApp( 5518): ThumbnailFactory:Assume this is a corrupt video file.
E/SemcCameraApp( 5518): ThumbnailFactory:createMicroThumbnail() can't create a Micro thumbnail.
E/MetadataRetrieverClient( 311): offset (0) bigger than file size (0)
E/SemcCameraApp( 5518): ThumbnailFactory:Assume this is a corrupt video file.
E/SemcCameraApp( 5518): ThumbnailFactory:createMicroThumbnail() can't create a Micro thumbnail.
E/MetadataRetrieverClient( 311): offset (0) bigger than file size (0)
E/SemcCameraApp( 5518): ThumbnailFactory:Assume this is a corrupt video file.
E/SemcCameraApp( 5518): ThumbnailFactory:createMicroThumbnail() can't create a Micro thumbnail.
E/MetadataRetrieverClient( 311): offset (0) bigger than file size (0)
E/SemcCameraApp( 5518): ThumbnailFactory:Assume this is a corrupt video file.
E/SemcCameraApp( 5518): ThumbnailFactory:createMicroThumbnail() can't create a Micro thumbnail.
E/MetadataRetrieverClient( 311): offset (0) bigger than file size (0)
E/SemcCameraApp( 5518): ThumbnailFactory:Assume this is a corrupt video file.
E/SemcCameraApp( 5518): ThumbnailFactory:createMicroThumbnail() can't create a Micro thumbnail.
I/libcamera( 311): Preview average frame rate : 24.8227 (fps)
I/libcamera( 311): Preview average frame rate : 29.6755 (fps)
D/PowerManagerService( 623): acquireWakeLock flags=0x1 tag=AlarmManager
D/PowerManagerService( 623): acquireWakeLock flags=0x1 tag=sendinactive
D/PowerManagerService( 623): releaseWakeLock flags=0x1 tag=AlarmManager
D/PhoneInterfaceManager( 1025): Broadcasting intent ACTION_UNSOL_RESPONSE_OEM_HOOK_RAW
D/PowerManagerService( 623): acquireWakeLock flags=0x1 tag=RILJ
D/PowerManagerService( 623): acquireWakeLock flags=0x1 tag=RILJ
D/PowerManagerService( 623): acquireWakeLock flags=0x1 tag=RILJ
D/PowerManagerService( 623): acquireWakeLock flags=0x1 tag=RILJ
D/PowerManagerService( 623): releaseWakeLock flags=0x1 tag=RILJ
W/StagefrightRecorder( 311): Target file size (4294967295 bytes) too larger than supported, clip to 4GB
E/MediaProfiles( 311): The given video encoder 2 is not found
E/MediaProfiles( 311): The given video encoder 2 is not found
W/StagefrightRecorder( 311): Intended video encoding bit rate (30000000 bps) is too large and will be set to (-1 bps)
E/MediaProfiles( 311): The given video encoder 2 is not found
E/MediaProfiles( 311): The given video encoder 2 is not found
W/StagefrightRecorder( 311): Intended video encoding frame rate (30 fps) is too large and will be set to (-1 fps)
E/MediaProfiles( 311): The given video encoder 2 is not found
E/MediaProfiles( 311): The given video encoder 2 is not found
W/StagefrightRecorder( 311): Intended video encoding frame width (1920) is too large and will be set to (-1)
E/MediaProfiles( 311): The given video encoder 2 is not found
E/MediaProfiles( 311): The given video encoder 2 is not found
W/StagefrightRecorder( 311): Intended video encoding frame height (1080) is too large and will be set to (-1)
I/libcamera( 311): Meta data mode (Zero copy) = OFF
I/libcamera( 311): Meta data mode (Zero copy) = ON
W/CameraSource( 311): Invalid hfr value(-1) set from app. Disabling HFR.
E/OMX-VENC-720p( 311):
E/OMX-VENC-720p( 311): WARNING: Requested i/p bufsize[40960],Driver's updated i/p bufsize = 3112960
E/OMX-VENC-720p( 311):
E/OMX-VENC-720p( 311): ERROR: Request for setting bit rate failed
E/OMX-VENC-720p( 311):
E/OMX-VENC-720p( 311): ERROR: venc_set_param output failed
E/OMXCodec( 311): Setting Video OutPort Definition failed
I/CNE_DEBUG( 623): getSignalStrength networkType= 10
I/CNE_DEBUG( 623): CNE sendWwanStatus - type:10 strength:-77 ipV4Addr:42.107.6.68 roaming:1 iface:rmnet_usb0 timeStamp:2013-04-07 16:31:42.067
I/CNE_DEBUG( 623): UpdateWwanStatus type=10 state=1 rssi=-77 roaming=1 ipV4Addr=42.107.6.68 iface=rmnet_usb0 timeStamp=2013-04-07 16:31:42.067
I/libcamera( 311): Preview average frame rate : 29.7203 (fps)
D/PowerManagerService( 623): releaseWakeLock flags=0x1 tag=sendinactive
I/libcamera( 311): Preview average frame rate : 29.7443 (fps)
E/OMXCodec( 311): failed to allocate node OMX.ittiam.video.encoder.avc
W/StagefrightRecorder( 311): Failed to create the encoder
W/CameraService( 311): attempt to use a locked camera from a different process (old pid 311, new pid 5518)
E/MediaRecorder( 5518): start failed: -2147483648
I/Choreographer( 5518): Skipped 310 frames! The application may be doing too much work on its main thread.