At the Naace conference last week a few folk mentioned using an iRiver iFP 790 to record podcasts. i think they are out of production, amazon uk has a second hand one for £60.
I was pleasantly surprised to find them at my local argos for £39.99.
First test the recording seems pretty good even without an external mic. Interface is pretty poor compared to an ipod, way too small.
Found the software for mac too: iRiver Music Manager for Mac. For some reason the iRiver does not mount as a disk.