The western world is still salivating over the iPhone, but the biggest capacity of that must-have device is 8GB. For those of us who are attached to our 30+ GB devices, already tethered to another smartphone (hello, corporate Blackberry users), or would rather avoid AT&T, BluEye is a good -- although not perfect -- way to get the best of both worlds.

BluEye (Click image to enlarge.)

BluEye is an ingenious widget that looks almost exactly like an iPod remote, clip included. But the addition of a Bluetooth button shows the causal observer that it's more than a handy way to pause and control volume without fishing your iPod out of your pocket. What BluEye does -- and does very elegantly -- is turn your iPod into a hands-free headset for almost any cell-phone (so long as the phone has Bluetooth, of course).

BluEye routes calls from your cell phone to your iPod. The iPod announces an incoming call with a chirp over the music. Pressing the central play/pause button pauses your music and answers the call. You can even see who's calling you, thanks to a caller ID displayed on your iPod screen.

Ending a call is as simple as answering it: Press the play/pause button again, and your music will play where it left off.

A tiny hole in the top of the BluEye conceals the microphone, which works surprisingly well when the device is dangling at chest height or clipped to your shirt. Although holding the device up to my mouth overloaded the microphone and caused static, letting the BluEye dangle eliminated the problem almost completely.

BluEye's manufacturer, Gear4, states that you can display your most recent calls and even dial back through your iPod. Alas, even with a firmware update, I couldn't access this nifty feature. A call to BluEye revealed that users in Finland have this problem too. They said they would get to the bottom of this for me, but at press time, there wasn't an answer. I await their call, realizing that the answer may well be, "It just doesn't work in the States."

Another drawback: It sucks your iPod's battery life like an electronic vampire.

BluEye also provides a built-in radio, which makes your iPod truly multifunctional. Reception was clean, and once I'd selected my 15 presets, channel surfing was a breeze. A small button on the side of the phone (transparently named "MP3-FM switch") switches between radio and iPod modes. I had difficulty switching between modes, until I realized the button requires a delicate touch. A word to the hamfisted: Press the FM switch only once, then back away.

Although the BluEye is not without its flaws, if you're the kind of person who has their earbuds in more than out, the BluEye is the gadget you've been looking for. And at slight more than $100 plus shipping, it's a lot cheaper than an iPhone.