Appletell’s made no secret of our big girly crush on Smule, makers of the Ocarina app, along with a slew of iPhone apps that combine interactivity with connecting people from around the world. So, it was with no small amount of excitement that I headed over to their Macworld Expo booth to speak with Ge Wang, CTO and Co-founder of Smule.

Smule, makers Ocarina app for iPhone aren’t content to have their app, which turns your iPhone into a musical instrument, be one of the most popular paid apps on the iTunes store. They want Ocarina-ists from all over to go head-to-head, pitting their mad musical skills against each other in that modern-day equivalent of the gladiator pit: YouTube. The big prize? Glory, for starts. And if that’s not enough, there’s also a grand total of $10,000 in prize money.

In the heart-rending, brother-against-brother conflict that is Ocarina Wars, things just got more interesting. Because, while the Ocarina app from Smule lists itself as being incompatible with the iPod touch (since it uses the iPhone’s integrated mic), we’ve received confirmation that it works just fine and dandy with external mics for the touch, including the new Apple mic/remote headphones.

As you’ve no doubt noticed, we here at Appletell are big fans of the Ocarina for iPhone, produced by Smule. But we’re not the only ones: the app is, as of this writing, currently the #1 paid application in the iTunes Store.

But can it hold on to this spot, now that it is (gasp) no longer the only Ocarina app available? That’s right, kids, the moment we’ve all been waiting for is now upon us:

Ocarina Wars!

I hope you like hearing about the Ocarina application for iPhone, because we here at Appletell are unlikely to shut up about it. The app turns your bleeding-edge-of-tech iPhone into a 12,000-year-old musical instrument, and is quite possibly the most offbeat musical application since Jared.

Wow, that was an unfortunate comparison to make.

Following is a video from Smule (makers of the Ocarina app), showing how you, yes you, can sit around with around $1,000 in hardware and groove to “Stairway.”