Photoboard is another collage app for the iPhone and iPod Touch that allows you to manipulate your pictures and place them on a background of your choice. You can add multiple pictures and change their orientation quite a bit, but unfortunately you can't do any cutting of the pictures directly.
It feels like all of the collage apps that come out are falling just short of perfection. Photoboard allows you to manipulate the size and shape of the images very easily with just two fingers. You can rotate the pictures however you like, giving your collage a really personal feel. The only thing you can't do is cut your pictures at all.
There are four different backgrounds to choose from. You can adjust the brightness of each one so that it fits the mood you're going for. The pictures you upload will have a white boarder on them that unfortunately can't be removed, but it does give the whole collage a handmade feel to it. When you're finished, you can snap a screenshot of your work to show your friends.
This is a really neat app that's fun to use. The issue is that the image size is the same as your regular iPhone images. While it offers high quality resolution on the image output, it's still not as great as it would be if you edited this together on your computer. The price isn't bad, so check out Photoboard if you're looking for a new collage or scrapbook app.