Portable media players (PMP) with nice large screens are becoming more common and cheaper all the time, with several capable players under the $100 mark. The new Gemei x760+ is such a player, and along with an FM radio it supports WMA, APE, RM, MPEG, FLV, AVI, and VOB on its 3 inch display.
The device can also be used for light gaming as it ships with a Game Boy emulator. There is also a TV out jack for using the media on a big screen display, and the unit will cost you around $87.