Anyone know if there is hardware/software that would allow me to turn a 4th Gen iPod Touch into an X-Y Controller pad? Would be cool to control Alchemy's, Zebra's etc XY Pads........Thanks for any help.

touchOSC by hexler works with CoreMIDI over Wifi and short of Lemur this might be the only controller software for your iTouch you ever need.

Silicone Studios ITM MIDILab or need a WIFI server from their site.
It#'s free but thy have not been updated in a long time.
there are others but I canot remember right now.

MIDI Touch should do the trick, and more (make sure you get the iPhone version, though if purchasing from your iPhone you're probably not even allowed to purchase iPad only apps).. Can't really help you with how it compares to other apps and which is the right one for you, sorry - but someone else can probably chime in on that...

EDIT: There's also a dedicated Alchemy app wich goes way beyond providing just an X-Y controller - we're talking pretty much complete remotecontroll of Alchemy plus most of the Alchemy synthesis engine so you'll kind of get quarter or so of an extra instance of Alchemy..

Alchemy mobile is the best for use with Alchemy.
But for the rest: this seems to be exactly what you're looking for:
http://itunes.apple.com/us/app/midi-studio/id519720275?mt=8
(I have it - for my iPad -, and it's the best general purpose midi controller app I've found)

Thanks for all the suggestion gentlemen. I'll explore each one.

To be more specific I'm looking for something that would turn the entire screen of my iPod touch into an X-Y controller and some form of hardware or software solution that would allow the iPod to communicate with my computer without WiFi which I don't have in my studio.(Is there such a thing as a USB midi driver for the iPod Touch?)

Thanks again for the help.

http://www.ikmultimedia.com/products/irigmidi/
There are other solutions, but most don't supply power to the idevice...

Here's another one:
http://itunes.apple.com/us/app/midi-surface-2/id429677971?mt =8
Cheaper, and it has a picture of a full screen xy surface on iPhone/iPod.

second that.
totally the best thing for the small asking price right now.

TouchOSC app by Hexler

Lemur app by Liine

Thank guys.

MidiMe's instant xy looping rocks

also MIDI Studio from Wisknet is currently FREE:

https://itunes.apple.com/us/app/midi-studio/id519720275?mt=8