I think we should fix one of the mp3 player threads in the feature requests section, seems that almost every newbe thinks somehow about that.(Me too, and barney always gives the same answers...)
From a programming point of view, this should be doable, because there are a lot of open source MP3 players. The question is if the camera's CPU is fast enough. I think you will need something like 64Mhz or so to get a good quality MP3 player. Does anyone know the clock of the Canon cameras?