Education apps for literacy in the lower primary school age bracket have been thin on the ground since the app store opened. However, a new program called PocketPhonics has just been released that looks set to appeal to just this market. I know of several teachers in my state of Queensland and across Australia who are experimenting with iPod Touch's in the primary school arena - and this app takes a great drill and practice method to learning phonics and letter-sounds. 

More than this though, it harnesses the devices visual, audio and even motion-sensing abilities to engage students. It doesn't hurt that research has proven that such a multiple learning-styles approach (visual, auditory and kinesthetic) is one of the key ways to increase early success with phonics.This app is definately showcasing just what advantages a natural digital interface (in this case multi-touch and shaking to erase) can bring to education. There is even a lite version you so you can try it out.