cutting sections from original tracks like i-tunes

Hey Zach, There's a few things that sound like they'd get in the way of what you want to do:

1. Audiomulch won't play MP3 files - it only supports non-lossless formats like Wav or Aif. 
2. I'm guessing you won't have the software/hardware to route audio from iTunes to AM - there may be software that does it but not that I know of. I had an Emu soundcard that could do it but that cost a fair amount of money 
3. AM isn't really an audio file editor, it has ways to play audio files but the dedicated Fileplayer and Looper contraptions have quite basic controls (play/stop/loop/play position). If you want to cut out a piece of audio from a larger file you are better off using a program like Audacity or Reaper (to name the cheaper options) and then load up the resulting file in a contraption in AM. On the other hand, AM has something like the Bubbleblower contraption which can do stuff with an audio file that very few other (if any) pieces of software can also do.

Another option could be to feed audio into Audiomulch and capture it using the Livelooper contraption, then you can process away from there - eg, you could play audio on your phone, feed it into your computer and then capture on Livelooper and process it through other contraptions from there.