Walletex, the makers of the credit card sized MP3 players now have some neat Christmas versions available. Both Christmas and Hanukkah. The Hanukkah version features a dreidel and candles, while the Christmas version has classic scenes. Just store the MP3 player in your wallet. You could even give them out as expensive greeting cards, by putting photos and music on them.
Get them in 4GB,2GB,1GB,512mb and 128mb versions. The 4GB sells for $106. Needless to say, these make perfect stocking stuffers.