Many people have been complaining about not being able to play music from their iPod/iPhone. For every app, you can simply double tap the Home button to play your music. The iPod/iPhone would hear it coming out of the speaker and visualize it. Only problem is that the speakers arent the best quality but you could plug if into external speakers or the car stereo.
Agbvvjjfdv about Audiogasm: Music Visualizer - Real time animation of audio and music for iPhone, iPod touch, and iPad