I wouldn't get that. You'd probably regret it. Get something that is well known, or has had positive reviews.
You can by 3.5mm jack splitters if you really want it that much...
You COULD put a MICRO SD card in it, but the description doesnt mention SDHC (the high capacity (micro) SD cards). If it DOESNT support SDHC, then the most you'd be able to add would be 2GB..
I would personally get the iPod touch, but i'd save the additional 35 "bucks" and get a new one...: