So Jens Of Sweden is aiming at the iPod nano with their new feature packed MP-500 media player.

The JoS MP-500 measures 81x40x13mm and weighs 51g. An iPod nano measures 88.9x40.6x6.8mm. So the MP-500 is a bit shorter, but nearly double as thick.
A 1.6 inch Color TFT with 128x128px is used as display. The MP-500 supports MP3, WMA and OGG audio, MP4 video files and jpg photos. Other features include text viewer for lyrics to use it for karaoke, Built-in speaker, FM-Tuner, FM radio recording, voice recorder and USB host function.
The 1GB player sells for $189.70 and the 2GB sells for $242.54. For the gold edition (Excentrique) 2GB Jens of Sweden charges $274.24.
Jens of Sweden actually filed for bankruptcy last year. Seems like they are still hanging in their and are restarting quite well.
More details about the new JoS MP-500 on its product page.