PicMix Lite for iPhone

This is a photography app, not the best but no harm checking out. Downside on the lite version is, it doesnt allow you to save any pictures larger than 300 * 200 pixels.

This application allows you to mix two (or more) pictures into one montage. The pictures can be freely moved and resized and you have complete freedom over which parts of the photos you want to keep. You can remove (or readd) parts of the images with your fingers, like painting. Change the settings of the brush for fine-tuning. With this technique you can create montages, replace backgrounds or combine pictures any possible way you can imagine. You can also create semi-transparent layers of photos.

Download link : http://itunes.apple.com/us/app/picmix-lite/id324019981?mt=8#