A: Loopy is best used with headphones, or third-party audio equipment. Your device's inbuilt microphone is located directly beside the speaker, which means that anything played by the speaker while recording will be picked up (not what you want!).
To combat this, Loopy ducks the playing audio whenever you record. If you have an iPhone 4 (or newer!), you will see a "Noise reduction" setting in Settings. Turn this on to try the inbuilt noise reduction and echo removal. Note, however, that this system was designed for speech, not for music, so the results may not be particularly good.
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