Absolutely - you can add music from your iphone or ipod. When you are selecting music, you will have the option to choose music from our library, or click the "add music from your device" button. Then you can select from your own music.
As always, if you are posting your videos on the Internet, you should make sure that you have permission from the copyright holder to use specific music tracks. This is especially important if you are using the videos for business purposes. All of the music in the Animoto music lounge is already licensed for you to use so that you do not need to worry about this.