You may not be able to recapture those magical Christmas mornings of your youth, but you can sure make it look like you have with Vintage Camera from Presslite. Available in both paid and limited free versions, Vintage Camera allows you to add fully original and striking effects to your photos and give them style. More specifically, the faded and discolored style of those old photos you’ll find in shoeboxes in your parents’ closet.

In iOS 5, Apple added editing features to the Camera app on your iOS devices. The features allow you to enhance your photos without having to transfer them to iPhoto on the Mac. The Camera app now includes four basic functions: Enhance, Red-Eye removal, Rotate, and Crop. I noticed during my testing that once your enhanced image gets saved, it over-writes the original; there is no option to reset your photograph to its original state.

At their press event yesterday, Apple announced version 4.1 of their iOS which included a bevy of impressive features. One particularly interesting addition is the ability for users of the iPhone and iPod touch to take HDR pictures. HDR, for those not familiar, stands for High Dynamic Range. Essentially, it involves taking several exposures of the same picture and combining them into one hyper-real image that is, ideally, exposed properly in every part of the image.

At the last iPod event, it was widely speculated (by me) that the iPod touch would get a camera addition. When it didn’t show up, the press (me) rationalized that Apple was worried it would cannibalize iPhone sales, since the major difference between the iPhone and touch is the phone, the camera, and the microphone. But now, Apple has to offer Facetime on the next iPod touch.

With the iPhone 4 now on the market, the rumor mill and leaks have switched directions towards the iPod touch. On top of rumors of an iPod touch with retina display and dual cameras, leaked images of the frame show what could be a front facing camera like the iPhone 4 meant for FaceTime calls. This coincides with earlier rumors of an email based FaceTime that will work on the iPod touch.

It’s pretty much expected that Apple will be refreshing the iPod touch around September. The real question is which features from iPhone 4 will make it to the next iPod touch. Various sources point towards an update that will not only shoot HD video, but support FaceTime as well. A gyroscope is also part of this rumor, but I think it’s fair to say the next iPad will be getting that, too.

Apple’s next iPod touch has been rumored to be getting a camera for about a year now, and leaks from—where else—Tinhte from Vietnam are supporting that rumor once again. The camera is said to be 2 megapixels, which is a lower resolution than the iPhone 3GS and presumably whatever shows up in this year’s iPhone update. The rumor doesn’t come with a release date, but you could probably expect it some time this year.

I, like many others, was pretty bummed when the rumors about the flaw in the upcoming iPod touch camera prevented it from being produced this year. But time has passed, and apparently Apple is pretty close to fixing those issues. They may be ready to launch the iPod touch with camera in the spring. It’s still unknown whether this upgrade would include a 2 megapixel camera like the iPod nano or will have a nicer iPhone 3GS like camera.

Following is a 24 second clip of an Apple device, with a camera, being shown off on video (fittingly, video taken by an iPhone). iPod touch rumors have been spreading for weeks regarding an update that introduces a camera to the high-selling portable media device. Though the idea did not originally make too much sense, this may be Apple’s retaliation to AT&T’s continual mishandling of the iPhone—creating a nearly equally-featured device that many could use instead of being tied to AT&T and the iPhone.

According to a new story from Wired, Apple is currently producing new iPod Touch models that feature a camera and microphone much like that of its iPhone counterpart. With these two added hardware features, it appears as if there would be little differentiation between the iPhone and iPod Touch in future models. Unless Apple is also preparing a big iPhone hardware change as well, all the iPod Touch would be missing was a cell radio to make calls with.