The free iPad, iPhone and iPod Touch Twitter app, Twitterific, has been updated to vs. 3.0.3. and among the improvements is support for Instagram.
Because it's free-to-buy, you do get ads, but they're not too intrusive. I would still recommend shelling out cash and getting Osfoora - in my opinion the best Twitter app out there.
Here's the Twitterific changelog:
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