f3d0r at XDA-Developers has created a new widget for Android which lets you use your camera flash as a torch (or flashlight if you’re Atlanticly inclined in that way).  It’s simple, it does the job well.  The main advantage of this over other apps is that it’s just a toggle widget that sits on your homescreen.  Click it whenever you light to turn the light on, and again to turn it off.  Though it’s not available on the Market yet, you can download from here: http://www.mediafire.com/?nzkcjwrxnyr

The installation instructions are same as usual, either download to phone and install OR download to PC, transfer to MicroSD card, use Astro File Manager to browse to file and install