Great step up!

I use this app for teaching colors, numbers and the alphabet to Japanese kids. The update has made it so much better. It works with 3 year olds to elementary kids who love to play and color, especially if its on "Senseis iPhone". The Perfect Paint setting lets my youngest students created nice pictures without the boredom of having it just fill in. Very nice addition.
This is definitely a great app for learning colors, numbers and the alphabet in a fun way.

Gaijin Sama about 123 Color: Talking Coloring Book (Words Spoken In English, Spanish, French, and German)