YourITronics

If you’re looking for a build-it-yourself, standalone, USB harddrive based MP3 player, this may be of interest to you. Originally conceived as a replacement for a CD player, this unit sits on the shelf next to your stereo and connects via standard RCA line-out audio connectors. Features of the player include:

• Large, back-lit LCD display
• IR remote-control receiver port
• USB 2.0 connection for fast song transfers
• Functions as a USB harddisk
• 24-bit stereo audio out
• Support for fixed & variable bitrate MP3 files to 320 kbps
• Supports harddisks up to 137 GB

This is an open-source project. Full hardware schematics and software source code are freely available on the project site.

Hard-disk Based MP3 Player With USB 2.0 capability: [Link]

This circuit design is very basic, but it does the job, and thats adding something over a video. Source code and schematics are provided on the authors page.

ATmega8 Video Overlay Circuit: [Via] - [Link]