I had my eye on the range of SWIMMAN waterproof iPod Shuffles... until I saw the price!

I currently have a first-gen iPod Nano which works great, apart from the fact that I can't take it (or earbuds) swimming.
Can anyone recommend a reliable waterproof MP3 player and/or headphones?
- I don't need lots of fancy features - I'll probably just hit play and let it run.
- 1-3 GB is enough storage.
- If possible, under $250
- Smaller/less bulky is obvously better
It will be used when swimming with flippers/fins, so headphones that are snug or employ some sort of fastening option to goggle straps would be preferred.
Am I asking too much?!

I have seen a couple of waterproof MP3 players on TradeMe, I'm not sure of their quality - can anyone make some suggestions?
Thanks for any help!