Originally posted by Deiberson <snip> The only way to get softer light is to enlarge the source. Diffusers really don't make the source that much larger than the straight flash so bouncing should "almost" always be your main objective. <snip> Actually after re reading the OP, you're limited in where you can bounce with the 360. I forgot about the fixed head and why I hate mine so much.
I'll certainly agree that the only way to get "Softer" light from a flash unit is to increase the size of the source. I've even been known to shoot my older AF280T through a 36" umbrella. I'll also agree that under good circumstances, bouncing the flash is the best.
However, for a general, multipurpose set up, I find that putting my AF360fgz up on the Stroboframe Flip (several inches further up above the lens in either orientation) drops the shadows down, making them less noticeable. This isn't too bad by itself, but if I'll be shooting people, I want softer light still. Then I'll add my Photoflex inflatable soft box (aka the pillow). This increases the size of the source from 1 X 2 1/4 inches to 5 1/2 X 8 inches and does substantially soften the source while still having it point directly at my subject (for maximum flash power). It also keeps the source directly over the lens to keep those shadows in line. The previously suggested Lumiquest bouncers work OK in landscape but if you shoot in portrait orientation, your light source moves to the side far enough to skew the shadows. (Yes, I have used two different Lumiquest fold ups, but prefer the pillow)