I've recently bought one on ebay(.be) & it fits the description you're looking for:http://cgi.benl.ebay.be/2...88474QQrdZ1QQcmdZViewItem
The plus side is that it's pretty cheap. (I paid 68 â‚¬)
The downside is that you'll need other head-/earphones. The ones that get delivered with this player absolutely suck.
Oh, and it's a clone, no brand name. It looks like an Ipod Nano, but it does not have 'the wheel'
Also important, it uses a 2.5mm audio jack. Most earphones have a 3.5mm jack. So you'll probably need a converter, but those are cheap.
And it uses .amv to play video, which isn't a good format for that. But then again, this is something I'll never use. (actually, who does watch video's on such a small screen?)
Anyway, if you're looking for something cheap which fits your description, then this could be it.
They also have 4 GB versions.