We've been keeping an eye on Cowon ever since it (among others) was rated above the iPod Nano in Consumer Reports' contest. Its latest D2 touchscreen player doesn't disappoint.
Despite the fact that there's a dude sitting on it, the player is only 3.07 x 2.18 x 0.65 inches. Its features: 2.5-inch 320x240 display, 2GB or 4GB of flash memory, SD card slot, WMV9/MPEG4/WMA/MP3 support, 30fps video, TV-out, FM radio, and voice and line-in recording.
Product Page [Cowon America]