As I had feared you are both correct, I have now checked on the Samsung website and it is only a 512MB chip.
I have just contacted the ebay seller in an attempt to get some sort of refund. If I don't get any joy from them I will take up the matter with ebay.
I am really getting fed up with these MP3/4 players from ebay/China, this is the 3rd one that I have had trouble with in the last year. Something needs to be done to make sure these sellers are not selling dodgy players that don't do what they advertise.
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