Dragon Dictation (created by Nuance) has created easy to use voice recognition iPhone app. It works with the iPd touch and iPhone (2nd generation).  You can also update twitter with it! It is a convenient voice-to-text transcription tha can be sent via SMS, email or any app on your iPhone using clipboard.  One cool feature is that they will upload your phone book names so that when you dictate using someones name it will choose from your list of names to improve accuracy!

I just tried it and it seems to work quite well.  The first text I tried, did not work out very well, so I spoke slower and inunicated a bit more and it was perfect.  You are still required to type in the name of the person you want to text or email to.  You also must double tap to insert the dictated text into the space.  So, for short messages it might not save you many taps, but for longer ones it seems it would work very well!  According to their website, it is up to 5 times faster than typing!

Has anyone else used this?  What do you think???

Check the Apple apps store for this product.