This Media Player

Buy.com has the Belkin F8Z109 TuneStudio iPod Mixer and Recorder for $198 - $35 rebate (Expires 9/30) = $163 with free shipping. Compatibile with iPod classic, iPod 5th generation (video), iPod nano 2nd generation, iPod nano 3rd generation.

Product description from Buy.com:

The first of its kind, the TuneStud!
io is a four-channel audio mixer allowing for digital recordings made directly onto an iPod at 16-bit 44kHz quality in uncompressed WAV format for crystal clear audio. Recorded items can be played back instantly. Audio is streamed though the built-in USB interface to and from a PC or Mac. TuneStudio also works as an external sound card, allowing input and output of audio to a PC from its connectors.

The TuneStudio is compact and rugged, making it ideal for bands on tour as it can withstand life on the road. Jam sessions can be easily recorded by simply attaching instruments and microphones to the TuneStudio. Podcasters can use the TuneStudio to record their shows either in studio or on location.

Each channel has a 3-band EQ and pan and level controls. High-quality Phantom-power-enabled XLR inputs provide up to 60db of microphone gain and a high-quality stereo compressor with makeup gain enhances audio dynamics and keeps audio levels within the recording !
limits of the iPod. Compression is controlled by a single knob. The Tu
neStudio features LEDs to indicate master audio level, power status, peak indications, and compressor.

In the box: TuneStudio, power supply, owner’s manual, Cakewalk Music Creator LE Software, 3.5mm to 1/4-inch headphone adapter, iPod adapter insert

FeaturesInnovative audio mixer that allows direct recording onto an iPodFour channels can be mixed simultaneouslyRecords uncompressed WAV files directly to the iPod at 16-bit, 44khzEach channel has controls for 3-band EQ and pan and levelCompact and rugged design makes it easy to transport High-quality Phantom-power-enabled XLR inputs

Product link.