We do a lot of mobility consulting so phone selection is a big part of that. I agree with you about phones and cameras. Right now, keep them seperate. But phones and MP3 players are a great mix.
I don't know enough about the carriers up your way but I do know that one on them is GSM. For that network you can buy a phone like
this plus a SD card. She will not only have as many MP3's as she wants but with a little mod'ing can watch DVD's too.
It is a great phone too. We have one and it may be the best pure "phone' we have tried.
HTH