Mac HTPC has a post that mentions the G-PLAY Portable Media Player. It is a standard Media player that plays the standard MPEG 1, MPEG 2 and MPEG 4 video files; MP3 and WAV audio files; and displays JPG graphic files. It will also have a 40Gb, 80Gb or 100Gb drive to store these files.
One of the coolest things about this player is that it will play standard iso images of DVDs, with all of the standard menus, so you don't have to transcode the DVD video to play it.
The G-PLAY will be shipping in March, and will cost from $259 to $399.
The only "problem" that I see with the G-PLAY is that the only way to get content onto the device is via USB. I would love it if it had a network port so it could copy the media files from a remote file system. Maybe a future firmware update will allow a USB network adapter to be used.