Take a look at Audible.com to see which machines are compatible with their audiobooks - if you live in the USA you can get a good discount on some of them if you take out a year's subscription to Audible.
Personally I have recently purchased a Palm Tungsten T5 (and a 1GB memory card) which I can use as an mp3 player, an mp3 book reader, a film and picture viewer, a games machine, oh yes, and as a PIM. If I didn't have this I would be tempted to buy the Rio Carbon 5GB - the battery life is apparently very good.
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