I bought this toy around Christmas. It is the Archos media tablet. It plays music in many different formats. (I generally stick to 256k mp3) It will play video. Its also capable of going on the internet. (With available Wi-Fi hotspot.) It will run flash applications and shows pictures. It has a 5" touch screen. It will play streaming media on the internet. (I've been watching Cal-Trans traffic cams lately, for free.)It also has several different adapters, (Sold separately of course) which will make the unit a DVR, (Like Tivo) a GPS locator, a video camera, and an FM radio, to name a few.It has a 250GB hard drive, and costs about $300.
http://www.amazon.com/Archos-250-Internet-Media-Tablet/dp/B001D0E4DA/ref=sr_1_1?ie=UTF8&s=electronics&qid=1267857219&sr=8-1