I got one of these from OD last summer in a deal that was slightly better than free once the MIRs came back (which they did in a timely fashion).
Mine sounds just fine on a $20 pair of Sony headphones I've had for awhile. Sure, it sucks down batteries (especially while downloading), but since I've got about 20 Renewals that'll still take a charge I don't worry about that too much. 16MB internal is pretty lame, but I was able to get a good price on a 28MB MMC, so now it holds enough music to distract me from the fact that I'm trying real damn hard to kill myself on a treadmill, four miles at a time. But I digress.
My two main complaints against the JAMP3 are 1) it just refuses to download some MP3s (and I have no idea why), and 2) the skip track buttons don't let you move around inside a song by holding the button down (like about every CD player does).
If I had it to do over again, would I take the $26.50 deal we're discussing? Yes, if I already had a decent set of headphones and (several!) NiMH/rechargable alkaline batteries.
Cheers,
--pg