With all the Zune madness this week, we’ve overlooked another music device that just launched, the Sony-Ericsson W580i for AT&T. We like SE phones a lot, though as music devices (which they are, they’re called Walkmen), there’s still some work to be done.

That being said, it’s a step in the right direction, with stereo Bluetooth, and a built-in FM radio, you’re ready to rock out of the box. The phone does have expandable storage for your MP3s (even though that makes you a thief), but it’s in the Memory Stick Micro format, which isn’t so hot. While it’s nice that AT&T includes one, it’s only a 256MB one, enough for a handful of albums. In this day of 4GB cellphones, it seems a joke.

Other fun music features include the awesome Shake Control, and Track ID, which allows you to get song information on the fly. Veryhandy.

The phone itself looks nice, with a full instant messaging suite, 2-Megapixel camera, and a pedometer. No, really. Take that, iPod+Nike! And it’s only $79 with a two-year contract, not a bad deal for a decent phone at all.

Product page [AT&T]