CrunchDeals: 2GB Archos 105 for $26
Features include a 1.8-inch OLED screen, 7mm thickness, MP3/WMA/WMV/JPEG support, and, as mentioned, two gigabytes of storage.
UPDATE: All gone — looks like Amazon sold them all. They’re only available from third-party sellers now at closer to $60.
Archos 105 2 GB Video MP3 Player (Black) [Amazon]