“ReelDirector can’t do everything, mainly due to limits imposed by Apple’s iPhone SDK. The biggest among them is the inability to use your iPod music for background sound. The best workaround so far is to record your music through the iPhone’s microphone.
While ReelDirector is probably best compared to iMovie rather than Final Cut Pro, the ability to edit quick videos and share them with loved ones without ever touching a computer is still quite remarkable.”
Quite remarkable, but still limited. Seriously Apple, what’s the problem with background music?