So far there has only been one reported issue. On rare occasions iPod touch 4G may crash or fail to start. This issue can easily be solved by rebooting the device or closing some of the multi-tasking background applications. The few players that have reported this have all said it works fine after a reboot.
The live reaction camera shows you a webcam view of yourself Currently having the device record that at the same time slows down game play to much. If you wish to record this live then external video capturing software must be used.
The original intention was to have the reaction camera help those people who create YouTube walkthroughs and allow other people to watch your reactions when outputting the iOS device to a large screen TV.