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They should be able to take codec packages as they evolve and update and new ones appear. If they can't do that, they're crippled.
I'm always on the look out for such a device -- so far none has really met my expectation better than a homebrew. And no, if you have a good parts supplier in your area - it should be far less than $500 for a homebrew (unless you want some shiny splendiferous case for it).
Thanks for the PMP acronym... "mp3 player" sounds so silly any more.
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