The iPod touch requires an amplified microphone to use Voice Notes, such as the one built by the TouchMods.org folk.
Recording Audio The Studio screen lets you record audio. It's the first screen that greets you on launching the program. Tap the green button. It turns red. Speak or hold the iPhone towards the audio you want to capture. A live meter (the bar just below the record button) shows you your current levels and an elapsed time counter keeps track of the recording length.
It is a known problem that the recording length can be off by several seconds. The true recording time is usually one to two seconds longer than the indicator shows.
Recordings are automatically timestamped and added to your library screen. Tap Library to enter the library.