It was a rumor about this innocent player, but it comes true. Small, not like the big and huge Nano :p. iAudio E2 comes in 2gb and 4gb which as I think it will save more than 1000 songs.

More specs:

Capacities: 2 or 4GB
Audio: MP3, WMA, OGG, FLAC, and WAV
Battery life: 11.5 hours of Audio playback

Dimensions 26.6 x 64.2 x 7.7 mm