I am guessing that since its a Cingular based program, that they won't be able to charge you for the usage... but I suppose I may be wrong. I have been using it too for the last couple days without thinking about charges.
MusicID listens to a song through the microphone on the device and then compares the audio trace via their internet database of songs. If it finds a match, it will basically just ID the song and artist for you. It works exceptionally well also... I have used it to ID 23 songs and it got them all right the first try. Very cool little app.
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