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Unfortunately, it's not really possible for Apps, unless Apple themselves do it. The iPhone SDK doesn't allow access to the iPod music list.
 
The best you could do is set up your song as a ring tone and then set that through the alarm functionality in the Clock app (I think you can do that but can't check as the gf is sleeping). Third party apps can't run in the background through the SDK nor can they access the music in the iPod library.
 
The best you could do is set up your song as a ring tone and then set that through the alarm functionality in the Clock app (I think you can do that but can't check as the gf is sleeping). Third party apps can't run in the background through the SDK nor can they access the music in the iPod library.

you can do that with the ipod touch? does it have to be jailbroken?
 
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