Silicon Valley based Unicon Systems, Inc. is developing an interesting portable media player with Wi-Fi dubbed MBridge.

The Wi-Fi (only 802.11b) enabled MBridge runs on Linux and features a 3.5 inch color screen. It has 2 USB ports, 1 high speed USB mini OTG, internal SD card slot and iR port.
Unicon says the MBridge can access any music store to purchase and download music as well as working with online photo services. The MBridge runs software applications like MP3 player, web browser and Instant messaging clients. The Unicon MBridge measures 3x5x0.75 inch. It weighs 6.5 ounes. Unicon Systems is taking pre-orders now. Everything USB reports that the MBridge will sell for $159.99 in October 2006.
See also the MBridge product page.