We just published our first app in the Android Marketplace. It's called 'LED Torch' and is available for 99 cents.
This app. allows you to use your phone's LED as a torch. Works for Droid/Milestone running 2.1.
We are testing on other phones and will continue updating app description based on our progress.
On launch, this application switches LED on. You can tap on the bulb image to toggle it. It switches LED off on pressing Back/Home key.
Please give it a try and let us know your feedback.