I also bought a similar "4 gig" Two inchGlacier-alike from Coolstuff_Online, and it turned out to be a hacked TWO gig unit. When I complained they tried fobbing me off with rubbish about how one of the chips might have fallen out/worked loose. I pointed out that they're already well-known as a seller of hacked players. They offered me a 1/3 refund... which I accepted. They haven't given me the refund, and they don't reply to emails. Ebay is completely uninterested in intervening (surprise surprise!) You got lucky!
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