Patrick Klein emailed me a month ago about his new app: iPhone Spelling Toy. I took a while to review it for two reasons: 1. I am very busy and my 9 year old was not available to test it out appropriately. 2. It seems to use a video for a portion of the display and I cannot record that 
So I am left using the programmers (authors?) video. Pretty good job anyway.
My 9 year old really liked the app. She spent a lot of time using it and thought it was rather fun/interesting. Some of the words are at my best guess made for 2nd grade and up. My daughter is in 3rd grade and she had no problem with the words, but all kids are different.
The app is well written, the graphics are well done and the options are useful.
Overall I give it a thumbs up, but here is the real breakdown:
Learning: 5/5
Fun: 3/5
Attention Capture: 4/5
Total: 12/15.
Link to the developers website: http://nklein.com/2010/02/spelling-toy-iphone-app-released/