check out
http://www.swimman.com.au/shop/product/gen-4-2gb-blue-swimman-package/They take an ipod nano 2GB and completely waterproof it. Their ear buds are quality as well. I bought this package about a year and a half ago for swimming laps. Amazing quality of sound in the water! The ear buds have triple flanges that create a nice seal. I did my research and swimman came out on top. The only complaint I would make, and it's a small one, is that when I received the package in the post, the flanges on the left ear bud were kind of squished and flat rather that symmetrical and round from having weight placed on them in transit. While it's not an issue at first, after about 45 min- an hour while swimming, that side leaks a bit of water in and distorts the music. Like I said though, it's a small complaint on an otherwise very well working product. That's also including med-fast paced swimming and flip turns. I've been told you can get an antibiotic ointment to apply around the flanges that will prevent water leaking in, but I have yet to find a chemist that understands what I'm after. I keep getting told to buy wax plugs.