Vlingo 2.0 for iPhone [Free with in-app purchase - iTunes link] brings an all new, all prettier graphical user interface to the table, as well as Email and SMS Paste dictation -- as an in-app purchase.

The new UI looks great and more importantly, works great. The icons are big and easy to hit and helpful tips are littered everywhere. You can tap to start recording and tap again to stop, or just hold down, talk, and release. For the various situations where you need to use voice instead of typing -- like while driving (if it's legal in your region!) -- that kind of ease of use is priceless.

With the free app you get Maps, Search, Social (Facebook and Twitter), and Voice Dial. As mentioned, the Email and SMS Paste dictation are via in-app purchase. Note, it's called SMS Paste because, unlike with Email, Apple won't allow apps to send SMS so it just copies your text and launches the Messages apps. You have to paste the text and then hit send on your own. The Email and SMS Paste options are $6.99 separately or $9.99 if purchased together. Whether they're worth or not depends entirely on how important voice email and SMS dictation are to you right now.

TiPb got our hands on the final version a couple of days early so we had a chance to try it out for a while already. All in all, Vlingo 2 works about as well as you'd expect a voice dictation app to work -- usually quite well, with hilarious tragedy on occasion. It does learn, however, so if you enunciate well and keep at it, your results should improve.

I liked it enough to buy the App Store version on release along with the Email and SMS Paste bundle. It's bleeding edge technology that should get better and more elegant in the future. And I'm a sucker for the the Star Trek-style apps.

Screen shots and video after the break! If you try it out, let us know what you think!

YouTube link

[gallery link="file" columns="2"]