Ive owned this app for a while, and had to come back and comment on it. These reviewers who say it doesnt amplify anything or do anything are very mistaken.
My guess is they didnt read the instructions. You must use 3 pole 3.5 MM set of headphones or earbuds. This is basically any 3.5 MM set of headphones without a microphone built in. You cannot use the earbuds that came with your iPhone. Those are 4 pole and when you plug them in, they disable the external microphone and you are listening to only your voice.
Also, its important to turn your device upside down. The external microphone is at the bottom of the device and you need to spin you device around to point it at the target of the sound you want to hear. The user interface adjusts for this.
The sound filters all work as advertised. Especially the mic boost. In fact, be careful with it, because it can get unbearably loud. Another note is dont just boost the mic, start the app, press the listen button and use the volume controls of your iPhone to turn up the output volume before you try boosting the mic.
My only complaint is the slight delay between the inbound sound and what your hear in the headphones. However, I saw in a TechCrunch.com comment that the author has fixed this issue and an update is pending.
All of these instructions are in the info page of the app too.
Listen Up User about SpyApps - Listen Up: Advanced Noise Filtering Voice Recorder and Amplifier