Xburst 600MHz and Android 2.2.1 are hints that this contains the MIPS Ingenic JZ4760. The JZ4760 uses an ancient 130nm process, and is also used in the Cruz Tablet, which was also recently upgraded to 2.2.1.
It is difficult to categorize a MIPS device compared to ARM, but the Cruz Tablet is a $150 tablet. This $45 PMP is a new low price for Android devices with wifi.
The marketing team somehow got the note that this thing will run Angry Birds and Need for Speed. It will likely be capable of neither.
Ships mid April