Windows Mobile PPC is a better choice for your requirement,
HTC P3400 is available for 10.4K,
If you need most economical PPC with 128MB RAM/256MB ROM then go for HTC P3470 ('Pharos') but price is 18.5K with no WiFi
If you need a PPC with WiFi,then go for HTC Touch for 16.1K but RAM is 64MB
Other choices are PPC with FM - HTC 3300,3350 (17K)
Windows mobile can enjoy variety of 3rd party applications including Music players.
So,Go ahead according to your budget !
Enjoy ! All the best !