This is the F029 watch from Aigo. It is a little different from the average MP3 playing watch out there because it has a full color OLED screen. It plays MP3 and WMA and it can even play MPEG-4 video on the 160x128 pixel screen. Included will be 512MB or 1GB of memory and, oh yeah, it can tell time. But that is the least important feature.
Aigo F029 Digital Watch/MP3/Video Player [dapreview]