At first glance, this appears to be a rather nice DAP, with XM Satellite Radio functionality thrown in for a nice upgrade. Indeed, the folks at Delphi have outfitted the SkyFi3 with a 2.8-inch screen, 30-minute pause and replay, a 5-hour battery that is (of course) rechargeable, and an application for saving your favorite XM tunes and downloading them from Napster.

But look closer: The SkyFi3 has removable storage. That’s right, it is has a microSD card. You can mix and match your content to your heart’s content, plopping in on little card after another. Could this be the future of portable music players? Why not?

Delphi says the 2GB that comes with it can store up to 10 hours of XM programming. How many MP3s is that? That’s up to you. It stores and plays MP3s, WMA, and WAVs, too.

The price for this device is listed at an attractive US$200. Delphi says they’ll begin shipping next month.