So far, as far as I can tell, you can only equalize graphically music when you are in the act of recording it or converting it in iTunes. Apple has not implemented a useable graphic EQ for iPhone or iTouch. This is a terrible thing because all headphones require different EQ settings and the generic ones that come with the device are not adequate in any way. It does however have a built-in limiter which helps things a bit so right now the only way to equalize these things is to go test drive as many different headsets as you can and find one that actually sounds decent.
Also, for those of us who require more volume, seems we are out of luck there unless someone makes a headset with a head amp built in to boost volume.
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