I finally got it figured out. Yes, without a doubt I could have bought a guitar input adapter pretty cheap but that would simply have been no fun.
Here is what I did to get the correct impedance matching for electric guitar input to the iPad to record in Blue FIRe (free app) and to play through AmpliTube FREE.
This is a very easy project even for an absolute beginner. You don't absolutely need to solder the connections, but if you choose not to solder, make *certain* those connection points are very very solid.
It is important that use the yellow, red and white RCA connector colors exactly as indicated below. Otherwise, you will end up sending input signals into output circuitry of the iPad and vice versa.
Start off with a basic camcorder output cord (3.5mm connector on one end, 3 separate RCA jacks on the other). You will also need one 1/4" female jack, one 1/4" male jack, 1 2.2kohm resistor (any wattage over 1/8) and 1 0.01uf capacitor (any voltage over 10). It is best to use a something other than an electrolytic cap here. Electrolytics are the cylindrical ones that have a plastic shrink sleeve on them.
Cut off the RED RCA connector and strip an inch or so of the wire. Solder (or otherwise connect) the ground wire (the wire that is spiraled around the inner wire) to the ground wire connection tab of the female 1/4" jack. That would be the little tab that is NOT connected to the metal part that extends out the back. Got it? Now strip about 1/4" of the insulation from the inner wire. Solder - or otherwise connect - it to one of the leads on the capacitor (if you are not using an electolytic it doesn't matter how the cap is oriented). Now connect one of the resistor leads to that same place. If you prefer, you can connect the leads of the cap and resistor together beforehand. Make sure they are *parallel* rather than connected end-to-end. Now connect the other end of the cap/resistor pair to the other connection tab of the 1/4" female jack. Just to be clear, things should be connected so that the signal will flow through the cap/resistor pair and into the long metal part of the jack that sticks out the back of the female input jack.
Next, cut off the yellow and white connectors. Strip them. twist the two ground connection wires together. Strip off the insulation of both signal wires and twist them together. Solder or connect the ground wires to the ground signal section of hte 1/4" male connector. This is the long straight shaft part that makes up almost all of the length. Connect the signal wires to the connection tab for the very tip of the male connector.
There you have it.
Plug the 3.5mm jack into the headset jack of the ipad. your guitar goes into the female connector. The male connector goes into a guitar amp so you can hear what is coming out of the iPad app your are using.
Bear in mind this is a mono signal. To record in stereo, I think you have to use the 30-pin connection and I haven't figured that out yet.
I hope this helps anyone interested.