If the Ipod Shuffle is priced at $100 for a 512 meg capacity, I think I'd rather buy this:
Lexar JumpGear
Uses removable USB jump drives, comes with a 512 and a 128 meg drive and is still tiny. It has a screen, and the overall shape is pretty cool. From the reviews I read the sound quality is good, but like every other Mp3 player, the bundled earbuds suck.
Plenty of options other than the shuffle in the 512 meg, $100 and under range.
Even better, for $120 you can get one with a 1gig and a 128meg drive
HERE