The watch is a full-fledged portable media player with 1GB of flash memory on board. You can play MP4 video files as well as MP3 and WMA audio files. An included mini USB 2.0 connector is used to transfer data from your PC. The watch also features a built-in voice recorder that can store up to 8 hours of low quality voice recordings. The MP4 watch is just $98 USD, and available in both black and orange styles.
And yes, it does have a clock in it too.