My second iPhone/iPod app has been released to the application store. It's called MixUp and is a lot like the face/body-mixing books you might have had as a kid or bought for your kids. Really easy to mix up any of your own photos or ones you take with the iPhone (also includes a bunch of samples to play with). And the price is right: 99 cents!
Here's a few I made during testing.
The four armed baby is a really nice touch!