Costco - Pandigital 7" Digital Photo Frame
I bought this as a present for my in-laws, and it is very cool. I loaded it up with 5 gigs of photos (adding 4 gb via a memory card--the internal memory is 1gb) and it happily pages through them on an endless loop. Optionally, it will play mp3s in the background if you have loaded some. Nice gift--the in-laws loved it!