The 'free' Pic Scanner app for iPhone and iPad (universal) has a lot of promise but fumbles on the details. The app lets you put up to three photos you want to digitize on a blank piece of white paper. Focus and snap, and the app automatically will crop the photos and let you work on them individually, applying filters like sepia.
It is at the next step that the app runs into trouble. You can save a couple of images to the camera roll or mail them, but after that the app wants you to buy the ability to save and share for US$2.99. I suppose a minimal number of tries will show you how it works, but in my view that's just too stingy. I think it would be better to call it a $2.99 app and be done with it. I think people will be irritated with