Minox, camera makers of some renown, are trying their hand at PMPs with the DMP-2. It's got a 2.5-inch color display and a laundry list of features: stereo speakers, video- and audio-in, SD/MMC support, and voice recorder. It can also act as a digital picture frame.
As we see from this image, it only shows pictures of people skiing in the 1980s, which is weird, but at 2.4 ounces, this tiny player looks to be a worthy contender in the great brewing PMP Wars of 2006. May be Europe- or Asia-only at this point, and there's no price set.
Minox Multi-Talented Media Player [BIOSMagazine]