WANTED: podcasting rig suggestions

I’ve surfed the forums, I’ve listened to podcasts about podcasting, and I’ve read what there is to read, but it all gets so outdated so quickly.

So, faithful readers (both of you), who has suggestions for a podcasting rig?

I need to it to come in under $400 (not my money, don’t worry), preferably under $300. I need something that can record a) interviews AND b) ambient sound. It needs to be able to record ambient sound while hanging around a photographer’s neck. If this means buying two different microphones, that’s okay.

I don’t need a zillion GB of memory – an hour of recording time should be enough.

I prefer something that involves transferring the recording as a wav or mp3 file via usb, firewire, or flash card if absolutely necessary. Mac and PC friendly, please.

Is an iRiver an option? What about an old iPod off eBay with some sort of line-in?

Clues? Anyone?

Thanks.

[tags]podcasting, podcast, podcasts, podcasting rig, iriver, ipod, recording equipment, microphones[/tags]