Starbrite Solutions has created a software version of Apple's popular iPod device called pPod. It's nearly identical to the iPod in function, but it is software, not hardware. It also is much cheaper than the iPod as it costs merely $20.
There are some differences between pPod and the iPod. First of all the pPod supports only MP3 format. WMA files and files downloaded from Apple's popular iTunes Music Store (encoded as copy-protected AAC files), are not supported. So much for turning your iPAQ into a "real" iPod.
The pPod does support memory cards but it will not change the stock 64MB limit of your iPAQ into the 4GB capacity of the iPod.
No word on how long this software will be around yet. Apple could very well attempt to take legal action against the company but we'll have to wait and see on that one.