Wal-mart sells a stylish and compact portable media player called TAVI.

The TAVI PMP has a 20GB hard-drive and 3.5 inch LCD display with 320x240px inside a white body measuring 3.6" x 3.2" x .97". The TAVI weighs 8.9oz.
Interesting highlights include a TV-Out which support HD resolutions of 720p and 1080i and a optical Audio interface supporting 5.1ch surround sound.
Besides this the TAVI portable media player features a FM Tuner, built-in stereo speakers, Equalizer with 27 presets, photo viewer, USB 2.0, 10.5 hours music playback battery life and 5.5 hours video playback.

TAVI 20 GB Portable Multimedia Center sells this rather hot looking PMP for $499.73.
Supported video formats are Divx 3.11/4/5, XviD, MPEG1 (VCD), MPEG2 (DVD), MPEG4 (WMV and ASF: transcoding software) up to 720x560 pixels, 30 f/s, 8Mbps Bitrate.

Supported audio formats are MP3, WMA, Ogg Vorbis, AC3 and AAC.

See also the TAVI site for more photos and technical details. TAVI is a brand of a California based company called New Media Life (site).