My cousin raved to me about this iphone app called FourTrack. My VS880 is still working, but the app's only $10 - let's take a look.

What a great little thing! Very easy to use. I had an acoustic song done after 15 minutes - no cables, no setup, just play, sing, directly into (or near) the iphone. Played around with it all afternoon.

It comes with a compressor and eq and is incredibly easy to use. You can bounce the 4 tracks to 2 ad infinitum (thx digital), and if you come up with something good, you can transfer the individual tracks to your desktop audio software.

Rather than assault your ears with my vocals, here's a video of someone who can sing using the thing : http://www.youtube.com/watch?v=7tBkyORe9o8

I would have sold my granny for this as a kid...