TUAW has an interesting post on using the iPhone as a musical scratchpad. The post includes apps like
Loopy and Beatmaker too.
Loopy has just been updated to version 1.1, but no Touch support as yet, which is a bit of a disappointment. Still, let's hope they'll include it soon.
Loopy has now been confirmed to work fine on iPod Touch. Enabling support as soon as Apple come back from Christmas.
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