The Matsui MAT120 is supposed to be a good value for money MP3 player.
However, gathering from my (short) partnership with this device, I can safely say that you would probably better use it as a storage device.
Dixons is clearing them out at £5.99 a pop. Look for "285227" in the search box.
For that price, you get a 2GB USB drive (even without batteries) as well as a pair of earphones.
Ideal as gift for your nephews and acquaintances.