OnSale has the Altec Lansing Orbit MP3 Portable Audio System (IM207) for $7 + $4 shipping = $11 shipped. Ultra-portable speaker system includes 3.5mm to 2.5mm elbow adapter.
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I would stay away from this. This has been replaced by a new, improved version, which fixes this unit's faults. On the one shown here you turn it on and off by rotating the chrome bezel. The problem is that the bezel is on so tight that you've got to be very strong to do it. Forget about getting this for my mom or kids. Also, there's no ON indicator (ie: LED), so it's very easy for you not to know that this is on and drain the batteries very quickly. Also, the attached cord is only about 7 or 8 inches, so it will have to be close to whatever you're plugging it in to. Note, what looks like a 3 1/2" speaker is really just 1 3/4" under that grille.
I was looking into this form factor and the reviews generally gave the IHome ones better marks. Good deal with free shipping on Buy.com recently.
The sound quality is great on this thing which runs on two AA batteries. The battery life is surprisingly good. The downside is having to twist to turn it off and on. It is really difficult to do without dropping it. You are better off buying the new model with the on/off switch.