On Monday we brought you a PMP from Asuka and compared it to last year's Epson P-5000. Well, Epson has come back with their P-3000, a 40GB HDD which plays H.264 videos on its 4-inch screen. It's Windows 2000, XP, Vista and Mac compatible and you'll get three hours' battery life for movies, and six for music playback. All that is available for $499 Stateside.
The subordinate model of Epson and H264 reproducible HDD storage [PC Watch through Google Translate]