I found the answer below and it will help your wife's iPhone 4 transfer the video at higher resolution. There may be other solutions that may be better but at least it will help you know what to look for! I never realized that the iPhone 4 did that when you transfered a video. Here ya go....
The iPhone 4 video camera can shoot movies in full HD at a resolution of 720p, but the problem is these videos are scaled down to a maximum resolution of 568 x 320 anytime you try to export them to YouTube or via email or MMS.
So far, the only way to get your video exported in full res is to transfer them off to your computer. Not very convenient for a mobile device?
Fortunately, there?s an app for that.
Pixelpipe, a free application in the App Store, will export your mobile videos in full HD 720p up to 200 MB to YouTube, Flickr, Facebook, MobileMe, Viddler, Posterous and a bunch of other sites. You can also email or upload those videos via FTP.
Additionally, Pixelpipe has been updated for iOS 4 and allows full multitasking for background uploading, which might come in handy if you upload a 190 MB video over 3G.
Sent from my Samsung Galaxy Note 3 via Tapatalk.