It's the new iPod touch 2g... as some of you rightly guessed. It was going to cost me 13.5k (~299$) but my uncle did not let me pay him anything.. so basically a gift
The speakers are just about loud enough if you want to play a game... not meant for movies etc.
PS: btw, using the touch to reply this.. web browsing over wi-fi is fantastic.. even checked my mail n chatted quite a bit.. works flawlessly..