PlayAwake is a new jailbreak app available in Cydia that will let you use your iPod music as an alarm clock sound on your iPhone. By default, you are only limited to a few alarm clock sounds on your iPhone. PlayAwake wiill lift this limitation and let you choose any song from your iPod library to wake up to.

Just pick a track from your iPhone’s music library from inside the default alarm clock app and you will wake up listening to your favorite song… 

This tweak fully integrates in the default Clock application. It will work for iOS4+ only.

You can download PlayAwake from Cydia for $1.99. Let us know how it works for you.