After watching iPad Today Podcast (TWIT TV) I bought the TouchUP photo app they had featured especially as it claimed to use masks. Cost £1.19 but you have to pay extra if you want some additional features.
It did have the ability to apply changes to parts of the photo, but it was nowhere near as good as my old favourite FilterStorm which does the same and more better.
The other photo app I use a lot is PhotoGene.
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