We reported first about ZVUE and it's maker HandHeld Entertainment already in 2003.
Now almost 2 years later the hardware is still the same. The company focused mostly on software, marketing and infrastructure. An Asian electronics companies would have maybe released two new iterations of the hardware. Which does not mean that would be the smarter thing todo.
It looks like ZVUE is on its way and with under $100 and the Wal-Mart distribution power they could reach a solid customer base to further build on.
Wal-Mart sells the ZVUE player with a 128MB card for $94.86. The ZVUE player has a 2.5 inch TFT screen and uses SD or MMC media cards as storage. It has a built-in photo viewer and plays MPEG-4/AVI videos, MP3 and OGG music files.
More details on ZVUE site.
Wal-Mart also carries the World's Smallest MP3 Player.