Real Artist installs via the App Store on iPhone V2.x/3G. A fun tool to play and twist images – Distortion Tool costing just $0.99. The app uses the photos saved in the library and camera roll. You can save save the images that you have played around with … the same gets stored in the iPhone Photo Library itself.
The slider seen in the image (bottom) lets you set the intensity of the distortion.
Update: Video Demo
Video Also available on YouTube
RealArtist is also available via the Installer on iPhone v1.1.4 (FREE)