It may not be “impossibly small” like the new iPod shuffle, but the Live CA-C265 is surely one of the smallest digital audio players on the market. You won’t discover any groundbreaking features on this compact device, but it can probably hold its own against many of its direct competitors. You’ll find an integrated FM radio, support for MP3/WMA/TXT, and a USB 2.0 high speed interface. The display isn’t the largest (1.2-inch 65k color CSTN), nor is the storage (1GB or 2GB), but that’s the price you pay for keeping everything so small (54.4 x 39.6 x 12.7mm) and light (34 grams).
It has a rated battery life of 12 hours, but there’s no price or availability information in sight. You can check out the official product page for more, though.