This Thanko FMP3 watch lets you play MP3s from your wrist and it has an FM radio, too. Choose between 512MB or 1GB of flash memory and wear your music on your sleeve, or thereabouts.
Although it's certainly not the first MP3 watch (even Thanko itself has a voice-recording MP3 watch among a few others), it would be so much nicer with a Bluetooth transmitter along with a pair of wireless earphones. Pricing is 113 and 148, or somewhere between $143 and a $187 depending on storage.
A new MP3 and radio watch [Akihabara News]