Over the weekend I got my hands on InnoGear's MiniJam and have been playing with it (to the annoyance of my wife) ever since.
The audio is great, and it comes with a soft case and some nice earphones, as well as excellent desktop software. I'm still working on the review, which is pretty big as I'm trying to show you as many screenshots and pictures as possible.
Look for the full review later this week. Also look for an MP3 player to be announced from another company.