This company makes pick-up lenses & mechanisms for CD / DVD players. Look here:
http://www.foryoumedia.com.cn/products/zyselas1.htm
What do they have to do with your MP4 player??
Besides, in this whole scam thing, the manufacturers are not the ones to blame. Its the traders & eBay sellers who are to blame. Hacking the memory is such a simple thing that anyone can do it at home.
Shenzhen has 2 huge mobile phone & MP3 / MP4 wholesale markets, where traders - probably a thousand of them sit on counters (not shops) just 6 or 10 feet away from each other. They will do anything for an order.
I have been working with Chinese manufacturers for over 5 years now. I work closely with some of them, and sometimes even help them out with their business with other customers. There is one thing you need to understand and appereciate about the chinese manufacturer - He has a factory to run and 300 employees to pay. He competes with a hundred others like him, and works on a fixed margin of 5 or 10 RMB per piece. He is an OEM manufacturer - he gives his customers exactly what they order - usually, with complete honesty.
If a customer goes to his factory, and says I want this products at a $2 lower price, he calls his engineering & purchase guys, who take the product & come back with a solution which he will give to you - The battery will be 100mAh instead of 270mAh, the screen will be of a slightly lesser quality etc.. and he will give it to you for $2 less, and still keep his RMB 5 margin.
If another customer goes to his factory and says.. "oh that guy offered 4GB to me at this price which you quote for 1GB".. he will then explain that it must be an "upgrade" product & explain how it is done. Ask him if he will upgrade for you - "mei-wen-ti" (no problem). The factory always sells a 1GB as a 1GB, at 1GB price, with the customer's marking (4GB) & required hacking - 2GB / 4GB / 8GB !! The factory does not mind doing this because his name or reputation is not at stake.
He is merely giving his customer EXACTLY what they want.