This has been out for a while, I just hadn't played with it before (check out the video to see what I'm talkin' about). The audio quality is perfect - it's an amazing effort. Just an SD card and an LED. I modified it (very slightly) to work with SDHC and the Propeller Platform's pins, here's the code . After I made the video, I realized it will do 44kHz AND 48kHz - not that I can tell the difference, but it's even more impresive.
It uses P0..P3 for the SD card and P4 for the LED output. copy your music file to an SD card and name it somerslt.wav. Works great!
https://vimeo.com/19992819