Other options...
1) Get an iPod shuffle for £32, and clip it to your sleeve or glove. I use this method quite a lot. Solid state, quite easy to control even with gloves, and very cheap if you lose it. Just run the headphone wire up your sleeve.
2) iPhone in an inside pocket, and then the Belkin SportCommand strapped around your sleeve. These are now £25 from Halfords if you reserve online and pick up in store.
I am going to be going with the second method now that I have the Belkin.