
I have the Belkin TuneTalk and it sounds pretty good with my iPod Touch. Unfortunately it blocks the earphone port and is incompatible with my Otter case. I have only tested it with the Voice Memo and iProRecorder apps.
I have developed a guitar cable that sounds very good with the same apps. It turns out the mic input on the Touch (and I assume the iPhone) requires a pretty hefty signal; passive (resistor-only) circuits produced a wimpy recording and sucked the guitar's tone. My cable uses a JFET and sounds very good, plus (unlike any I've seen online such as the PRS/Bond GuitarBud), it blocks DC from your guitar, which prevents those nasty crackles and pops. The iPhone/Pod provides +2.8V, intended to power the preamp in their earbud mic. If you put that into a guitar's circuitry, it causes sparks in the controls and connectors, which produces nasty crackles and pops. The cable should work equally well with any electric guitar or bass, though the iPhone/Pod will roll off the low end (probably more noticeable for bass).
The JFET circuit is tiny enough to fit inside the 1/4" guitar plug.
These are the connectors. In addition, you'll need 1/8 watt resistors and an MPF102 JFET, available at any decent Radio Shack.
http://mouser.com/ProductDetail/Kobicon ... w6Vg%3d%3d
http://www.mouser.com/ProductDetail/Kob ... G2lQ%3d%3d
http://mouser.com/ProductDetail/Ampheno ... ObHwBxk%3d
http://joeorgren.com