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the best way to go for an all around MP3 player is the iPod.
hands down.
on no other platform can you fit so much on such a small device.
searching for songs takes seconds. it even has a calader organizer, clock, games, and who knows what other special goodness on the next line of ipods coming out.
my ipod is the first generation. it holds 4.5 gigs. I've upgraded the software on it to the newest batch (well not including whats on the next generation of iPods which came out like 2 days ago). and i've formated it so that it works with my PC which i have here at college with me instead of for my Mac which is at home.
anyway, go iPod. you won't be sorry. you can fit tons of live sets and such on it, and transfering takes seconds.
if you really really need a small mp3 player for some reason then there are some other options out there. the most you'll be able to fit on them is 128 MBs tho, so you will only get 1 or maybe 2 live sets on them, and most of them are USB connections so the transfer rate is longer.
i feel the iPod is small enough for my needs (much smaller and ergonomic than the Nomad Jukebox, which i had and shun now that i have an iPod).
I go running with the iPod all the time, it fits in my back pocket. its just as big as my wallet
if you wanna do recording (live sets and such), then i would suggest looking into a MD player
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