I started off this project programming LUA in program called Codea. It is an awesome product, but it needs a bit of love in the sound department. With this being said, Gideros, is another program with sound support and better event handling. I will need to make the switch, some time soon, but it is just too cool to program on an Ipad with a Bluetooth keyboard.
I also dabbled in Unity, also a quality product, but again you need a Mac to make an ios game. Programming in LUA is too much fun and for a the 2d game I want to make it makes sense.
The next post will be the inerrant evil of programming a multi-touch interface