My reccommendations:
Creative Zen Micro Photo 4GB - $150
iPod Nano 4GB - $250

A 4GB MP3 player will hold about 1,000 songs, so you will have room if you plan on increasing the size of your music collection in the future. Since you aree looking for something under $200, I would go for the ZMP. Both the Zen and the Nano have color screens with the ability to view JPG images. The iPod is much thinner and looks a little nicer, but it's not worth the extra $100, IMO.

Creative Website
Buy.com Site