suffle2 has managed to port PSGroove to Redbox (a open source firmware for MP3 players and iPods). To quote: This is a patch for rockbox which replaces usb functionality with that of psgroove . Currently it is only functional on PP502x targets, and has only been tested on a 5th generation ipod video.

Here is the original post:
PSGroove Ported to Rockbox and iPod Video

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