Apple ipod shuffle - now waterproofed
If I had more pocket-money, I'd get one of these. Its not often that my twin passions of technology and swimming can combine safely. Not since the disastrous toaster-in-the-bathtub incident as a kid have I been able to indulge both.
The best news is that everyone here looking for a smaller gadget with a shuffle function can purchase a waterproofed ipod shuffle from SwimMan (http://www.swimman.com/main.html). Problem solved. Except, er.. that its still quite expensive. And it has to be posted from the USA. And apple has stopped making that design of shuffle. I think.
Another alternative is the Finis waterproof MP3 that is worn on the goggles and transmits sound directly through your skull. A swimming pal of mine says it works OK, but prefers waterproof earplugs.