Yes. I just tried it as a test. I launched iPod, pick a song, let it play, launch Amplitube using the multi-tasker function, and the iPod stops playing the song once Amplitube is fully started.
Amplitube does have a function where you can wifi transfer a song from your computer into the app to jam along with it. I think its a pretty roundabout way to get an mp3 into the app that already resides in my iPhones music library.
Update to this... IK MultiMedia released an update that now allows you to transfer up to 50 songs from your iPod library. Also in the update is the ability to record a track (expandable to 4 tracks as a purchased add on) and the addition of a speed trainer that allows you to loop a portion of a song and manipulate the speed.
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