Archos has introduced a new MP3 player, the 104, which provides solid performance and capacity at a low price. It replaces their Gmini XS 100 and is priced $100 below the iPod nano.

The capacity catches your attention – 4GB on a hard drive. Not huge, but a nice step up from the typical flash units we see at the low end. It has a 1.5” OLED screen, which you can use to full advantage with the JPEG photo viewer. It supports multiple audio file formats and also supports Microsoft PlaysForSure, giving you a range on online purchasing and downloading options. It promises 14 hours of battery life on a charge.

In addition to targeting the low price market, Archos is looking to compete on size. At 3.6 x 1.7 x 0.5-inches and 2.8 ounces it is very portable. But just a bit fatter than the nano’s 1.6 x 3.5 x 0.27 inch dimensions. It ships with headphones, a neck strap and a USB cable. You can get your own in mid-May for $149.95. Several add-on accessories will be available then, too.