I've got a 2nd-gen 1Gig iPod Shuffle. I like it. Sounds good, can store lots of CDs and it's rechargeable from USB. Unfortunately, the 3rd-gen is now out, of which I know nothing.
I have a Sansa Clip which is made by Sandisk and is very good. They have brought out a Sansa Clip+ now which you can add Micro Sd cards to for extra storage.
sansa clip plus. the ipod with it's stupid controls and lack of screen is a PITA. Probably easier just to drag and drop files for a kid too instead of setting the options on itunes.
The clip+ can also grow 'cos it has a mini sd card port.
Computer Shopper magazine (amongst others, I'm sure) keeps up to date on these things and has some suggestions here. There appear to be lots out there for sub £50.
No specific model advice, but check the advancedmp3players website (http://www.advancedmp3players.co.uk/) as they always have some good deals on.
The physical 'shop' is in the Ocean Terminal Shopping Centre just along the road from me, and I've bought a number of things from them over the years. Reliable lot who always have offers on the go.
I don't think you need to spend anything like £50. Not that I'm advocating meanness, but at that kind of price you're talking 4gb+, and I suspect there aren't that many 7 year olds with a library of thousands of mp3s. Too much is a recipe for confusion. Even this is probably OTT, at £20. Get him a bow and some arrows with the change.
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