Thanks for the quick reply. Your suggestion to reinstall iProRecorder seems to be the solution, at least for the iPod Touch 2G. Once I did the reinstall, I tested using 2 people talking into 2 mics through a mix console with hard panning to the left and right, as well as cross-panning while they were talking. I recorded with the ProTrack using line level inputs (L/R) and monitored the live process and playback through the ProTrack headphone out. There was stereo audio. When I transferred the sound snippet to my Mac (using Bonjour) and listened through iTunes - yeah!!! - it was the same panned babble.
Now that I know that the iProRecorder/ProTrack combination works correctly in a well controlled environment, I'll keep a watch on the ProTrack/iPod combination. I'm not ruling out hardware issues yet. I need to clear up the 3G Nano mystery. One thing that has come to mind could be related to the dock connector. Perhaps I didn't have a fully seated iPod in the ProTrack connector. This may have produced a mono mix. If I had an improper connection using an iPod Touch 2G with iProRecorder, the application may have also picked up a mono signal.
But above all, I LOVE this little application. It is simple to set up; easy to catalog recordings; very cool to have the mini web server wtih Bonjour connectivity to transfer files; simple recording process; and a very COOL looking interface - nice conceptual remake of the standard record, pause, FF, and REWIND functions.
Again, thanks for your time and testing.