Apple has launched the ipod mini which cost around $250. And since now the online music business is picking up heat you can get a mp3 song as low as 0.88$ from Wal-Mart. So doing the math you can get 1000 songs on your ipod for 0.88*1000 + 250 = $1130. Which is still expensive. In another six month or so it should be available in sub 1000$.